The billionaire Weston family behind Primark is reportedly closing in on a £7bn deal to acquire Boots from current owner Sycamore Partners.
The proposed deal would value Boots at around £6.7bn, including debt and comes after months of negotiations between the Boots’ owners and prospective buyers.
The Westons control Canadian supermarket giant Loblaw and pharmacy business Shoppers Drug Mart through Wittington Investments.
The wider family also has extensive interests in UK retail. Its British arm controls Associated British Foods, the owner of Primark, as well as luxury department store Fortnum & Mason.
The family previously owned Selfridges before selling the department store business in 2022.
A deal for Boots would mark a return to direct ownership of one of Britain’s biggest high street retailers and bring the chain into a group with significant experience across grocery, pharmacy and fashion.
The latest talks revive a deal that appeared to have stalled during the summer.
Retail Gazette reported in August that Sycamore had rejected a reduced offer from the Westons after the family cut its proposed valuation following the withdrawal of a rival bidder.
Australian pharmacy group Sigma Healthcare had also held talks over a potential takeover, with Boots previously valued at around £7.5bn during the sale process.
Sycamore acquired Boots as part of its $23.7bn takeover of Walgreens Boots Alliance last year before breaking the business into a number of standalone companies.
The private equity firm had also been considering a potential London stock market listing for Boots, meaning a sale to the Westons would end speculation over an IPO.
Boots has staged a stronger performance in recent years following investment in beauty, stores and its digital offer.
The retailer generated £7.5bn in revenue in its latest reported financial year, up 3.2 per cent, while pre-tax profit jumped 25 per cent to £337m.
The potential takeover looks set to take place as the Weston family prepares for another significant shake-up of its retail empire.
Associated British Foods confirmed earlier this year that it plans to demerge Primark into a separately listed business, with the separation targeted for completion by the end of 2027.
Click here to sign up to Retail Gazette‘s free daily email newsletter
