High street retailer Boots is set to operate as part of a new independent company after the $10bn private equity takeover by Sycamore of Walgreens Boots Alliance completed today (28 August).
It brings WBA’s time as a publicly listed company on the Nasdaq exchange in the US to an official end following the agreement of the deal in March.
Sycamore has created a number of separate standalone companies from the pharmacy giant, including The Boots Group, now the takeover has closed
The Boots Group will be headquartered in the UK and is made up of WBA’s international operations, including Boots UK&I, Boots Opticians, No7 Beauty Company, Boots pharmacies in Thailand, as well as overseas franchise retail operations and other businesses in Mexico, Germany and China.
Sycamore said The Boots Group was “well positioned for the future”.
The move is likely to ramp up speculation of the future of the Boots retail operation, with Sycamore widely expected to sell off the UK chain once the WBA deal completed. Sycamore and The Boots Group declined to comment on any potential future sale.
Ornella Barra will remain in her role as CEO of The Boots Group alongside all other senior leaders.
The Boots beauty and pharmacy retail chain in the UK and Ireland will continue to be led by its existing management team, with Anthony Hemmerdinger serving as senior vice president and managing director.
“The Boots Group is a remarkable institution with deep roots in its communities around the world,” said Sycamore managing partner Stefan Kaluzny.
“We are excited that, as a healthy, successful standalone company with 17 consecutive quarters of like-for-like growth, The Boots Group will now be free to invest and grow more aggressively into the future.”
Barra added: “I am hugely proud of the business that we have created and excited about this new step under new ownership.
“I would like to thank our colleagues across the world that have built this incredible company, and I am honoured to be leading these businesses on the next stage of our journey.
“Sycamore’s retail experience, and our strong foundation, positions The Boots Group to deliver against our strategy of being a leader in our markets and the communities we serve.”
WBA executive chairman Stefano Pessina, who has retained 100% of his family stake in The Boots Group following the deal, said: “The Boots Group enters this next chapter with strength and momentum.
“Our family has supported the company over many years, and we are proud to do so now in partnership with Sycamore. As an investor group, we are committed to investing in The Boots Group in order to accelerate its already very successful record of growth,” he added.
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