Weston bid casts doubt on Boots deal
The £7bn Boots takeover bid faces uncertainty as the Weston family revises terms, casting doubt on the deal’s future.
The future of a £7bn ($9.4bn) takeover bid for UK pharmacy chain Boots is uncertain after the Weston family revised its offer, leading Sycamore Partners to reject the new terms.
The Anglo-Canadian family had spent months negotiating to acquire Boots. A lower bid from the group stalled the deal, with a source close to the talks describing the chances of revival as “50/50”.
The Weston family adjusted its bid after Australia’s Sigma Healthcare withdrew its competing offer in June. With no other bidders remaining, the family attempted to reduce the price, a move Sycamore Partners found unacceptable.
“It is not totally dead. It is a stand-off,” the source said. “They tried to knock down the price after realising they were the only show in town. They came in with a lower number that was deemed unacceptable. The gap is not completely insurmountable. However, the owners will not sell at any price”.
Neither Boots nor Sycamore Partners commented on the matter.
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According to the report, the Weston family had become more cautious as the economic backdrop worsened since talks began around Easter, citing renewed inflation concerns, the risk of higher interest rates and weaker business confidence.
Boots has operated independently since Sycamore Partners bought it from Walgreens Boots Alliance for $23.7bn last year. The private equity firm had initially considered listing the chain on the London Stock Exchange before entering sale discussions with the Westons and Sigma Healthcare.
It is understood that Sycamore will restart plans for an initial public offering next year if the sale process does not produce an agreement. The company has been refining its operations, shutting hundreds of under-performing UK stores as part of a cost-cutting programme while focusing investment on 400 larger outlets. It runs 1,800 shops overall and also owns various beauty brands such as No7 and Soap & Glory.
Boots’ ownership has faced renewed attention before. In 2022, Walgreens examined a sale to private equity bidders, including TDR Capital, but those talks ended after bids came in below expectations.
