Boots owner strikes $10bn takeover deal with US private equity giant

Boots is set to be sold to US private equity firm Sycamore Partners as part of a $10bn deal that will take its parent company, Walgreens Boots Alliance (WBA), private.

The transaction, expected to be completed by the end of 2025, raises significant questions about the future of Boots and its 1,900 stores across the UK.

Under the terms of the agreement, Sycamore will acquire WBA at $11.45 per share, an 8% premium on the company’s closing price. Although the deal primarily centres on WBA’s US operations, the fate of Boots, one of the UK’s most iconic retail names, hangs in the balance.

The British health and beauty giant remains one of WBA’s strongest-performing assets, with the retailer operating around 1,900 stores across the UK.

The takeover 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 broader cost-cutting initiative.

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Despite its legacy, Boots has faced mounting challenges in recent years, as consumers increasingly turn to online retailers and discounters for pharmacy and healthcare products.

This shift, alongside lower drug reimbursement rates and a tough economic climate, has put pressure on WBA’s performance. The company’s market value has plummeted from $100bn a decade ago to just over $9bn today.

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. 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.

In a statement, Stefan Kaluzny, managing director of Sycamore Partners, highlighted the longstanding legacy of Boots and Walgreens, saying, “For nearly 175 years, Boots has been integral to the lives of patients and customers. We are committed to stewarding the company’s iconic brands.”

Walgreens CEO Tim Wentworth also acknowledged the role of Sycamore’s support in driving WBA’s turnaround. “Sycamore will provide us with the expertise and experience of a partner with a strong track record of successful retail turnarounds.”

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