The Memo: Boots owner to go private following $10 billion takeover deal

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Boots owner to go private following $10 billion takeover deal

Madeleine Clarke - 10 March 2025

The iconic British high street pharmacy chain Boots is set to have a new owner by the end of this year. Its current US owner, Walgreens Boots Alliance (WBA), is being taken over by US private equity firm Sycamore Partners in a $10 billion (£7.8 billion) deal. The deal will see Boots become a private company after almost a century of being listed on public markets. 

For some context, Walgreens took a 45% stake in Boots back in 2012. WBA was later formed in 2014 when the American company bought the remaining 55% stake.  

Although $10 billion might seem like a lot of money, it’s much less than the company was previously worth, as the chain has been badly affected by customers choosing to shop online to avoid higher prices on the high street. The company has also struggled with its growing debt. As a result, Boots announced plans to clos300 shops in the UK in June 2023, but around 1,900 stores still remain across the country.  

Walgreens has faced similar problems. The American pharmacy chain’s value on the stock market has fallen by approximately 80% in the last five years and, in October, it announced plans to close 1,200 Walgreens stores in the US over the next three years to reduce costs. The Walgreens business also consists of specialty pharmacy group Shield Health Solutions and healthcare provider VillageMD. 

While Sycamore Partners has vowed to maintain WBA’s iconic brands, there is uncertainty over what the future will look like for the Boots part of the business. It is, however, worth noting that the company specialises in retail and consumer investments. It has also invested in big brand names such as Kurt Geiger, Aéropostale, Hot Topic, Staples and Dollar Express. 

What impact, if any, does Sycamore Partners being a private equity firm have on the deal? Put simply, private equity firms combine investors’ money (equity) with money raised from banks (debt) to buy companies or other assets. The aim is to then sell these assets for a profit. So, Sycamore Partners will be looking to increase the value of WBA before selling at some point in the future. There have also been suggestions that Sycamore Partners might sell off the Boots chain separately.  

Private equity firms have become major players in the UK economy over the last few decades, buying up many high street names, from supermarkets to coffee shops, and investing in a wide range of sectors. Private equity deals make up a larger proportion of UK’s economy than they do in some other countries in Europe and the USA 

For a more thorough breakdown of the terminology involved in private equity and to find out more about the role of lawyers on such deals, check out our handy guide here.