Boots to be taken over by US private equity firm in $10bn deal

Walgreens Boots Alliance (WBA), the owner of Boots, has agreed to a $10bn (£7.8bn) takeover by a US private equity firm. 

Sycamore Partners is expected to complete the takeover by the end of the year.

The US-listed WBA said of the deal: “[Sycamore’s] experience in retail and consumer services would ensure WBA was better positioned to become ‘the first choice for pharmacy, retail and health services’.”

Meanwhile, WBA’s chief executive Tim Wentworth said: “While we are making progress against our ambitious turnaround strategy, meaningful value creation will take time, focus and change that is better managed as a private company.”

Stefan Kaluzny, Managing Director of Sycamore Partners, said: “For nearly 125 years, Walgreens, and for 175 years, Boots, along with their portfolio of trusted brands, have been integral to the lives of patients and customers. 

“Sycamore has deep respect for WBA’s talented and dedicated team members, and we are committed to stewarding the company’s iconic brands.”

It remains to be seen what the deal will mean for Boots in the UK – the chain pharmacy has been a mainstay of the British high street since it was founded by John Boot in 1849. 

Boots remains one of the group’s best performing business lines, with a London float suggested as recently as last year. 

“Sycamore will provide us with the expertise and experience of a partner with a strong track record of successful retail turnarounds,” Wentworth added.

Boots records strong growth

The buyout comes after the high street pharmacy chain warned it faces “heightened cost pressures” in 2025 following the Autumn Budget.

The new boss of the Nottingham-headquartered company, Anthony Hemmerdinger, said that while dealing with these costs would be a challenge, “the business is focused on navigating these and continuing to deliver long-term, sustainable growth”.

Boots’ boss made the comments after the firm revealed its total comparable retail sales rose 8.1 per cent year on year in first quarter of its financial year, the three months to 30 November, 2024.

Boots saw a “record” Black Friday in 2024, as digital sales surged by 23 per cent year on year and accounted for 22 per cent of its total retail turnover.

Hemmerdinger took over in September 2024, with previous boss Seb James stepping down just months after plans for a UK listing fell through.

Prior to joining Boots, Hemmerdinger spent six years as Asda’s chief operating officer, previously working in operational and strategy roles at Greene King, Sainsbury’s and Carphone Warehouse.