Boots chairman ups stake amid $10bn Walgreens takeover deal
Boots chairman Stefan Pessina will increase his stake in the pharmacy group to near-50% as part of a £7.5bn private equity takeover.
Boots chairman Stefan Pessina will increase his stake in the UK pharmacy group to nearly 50% amid the proposed £7.5bn takeover of the Walgreens Boots Alliance (WBA) by private equity firm Sycamore.
Pessina, who currently holds a 17% share in WBA, is expected to significantly increase his stake in the group, The Times reported.
Pessina’s plan to up his stake in the pharmacy group comes as details of Sycamore’s takeover are still being decided by advisors after the deal was first announced in March.
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The deal injects a level of uncertainty into Boots’ future, particularly after WBA’s recent restructuring efforts, which saw the closure of over 300 stores in the UK as part of a wider cost-cutting initiative.
Sycamore, known for its expertise in retail turnarounds, is expected to focus primarily on Walgreens’ US business, with the potential for Boots and other non-core assets to be spun off or sold.
The retailer has faced mounting challenges in recent years, as consumers increasingly turn to online retailers and discounters for pharmacy and healthcare products.
While Sycamore Partners has pledged to maintain WBA’s iconic brands—including Walgreens, Boots, and other consumer services—the future of Boots within the firm’s portfolio remains unclear.
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