On October 7, 2023, Wittington Investments, part of Canada’s Weston Family, announced a definitive agreement to purchase UK health and beauty retailer Boots for approximately $8.9 billion (about 59.6 billion yuan, including assumed debt). The transaction is anticipated to close in the first quarter of 2027, at which point Galen Weston will take on the role of Chairman of Boots.
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Boots, founded in 1849, operates over 1,800 stores across the UK, functioning as the largest community pharmacy chain in the country. It also owns numerous private beauty brands managed by No7 Beauty Company, including the highly popular No7 skincare line, Liz Earle, Soap & Glory, and others. The retailer features a wide array of over 500 beauty brands in its physical and online presence, including MAC, NARS, and Drunk Elephant.
Despite its extensive offerings, Boots has faced fluctuating financial performance. In fiscal year 2021, it reported a 2.3% drop in sales, totaling £5.8 billion (approximately 51.3 billion yuan), with a post-tax loss of £111 million (around 1 billion yuan). The following year, operating profit rebounded to £55 million (about 4.9 billion yuan) as post-tax profit turned positive. By fiscal year 2023, operating profit further increased to £88 million (approximately 7.8 billion yuan). However, in fiscal year 2024, adjusting for a one-time pension gain, the actual operating profit dropped back to £55 million, showing a decrease of £33 million (around 2.9 billion yuan) from the previous year, alongside a slowdown in revenue growth.
In response to these challenges, Boots has undertaken various reforms, including closing underperforming stores and introducing over 60 new beauty brands. By fiscal year 2025, Boots' annual sales rose to roughly £19.4 billion (approximately 171.5 billion yuan), with post-tax profit increasing by 23.7% year on year, largely driven by the beauty sector.
This latest transaction marks Boots’ fourth change of ownership in about two decades, beginning with KKR. The Weston Family, known for its control of Loblaw and Shoppers Drug Mart, has a strong background in pharmacy-driven health and beauty retail.
Under the terms of the deal, Wittington will acquire Boots' retail operations in the UK and Ireland, the Boots Opticians chain, No7 Beauty Company, and its Thailand franchise. Meanwhile, Sycamore Partners and the Pessina family will retain ownership of some other equity, including operations in Mexico and Germany.
Moreover, the broader beauty retail sector is currently undergoing significant shifts, marked by divestments and closures. Major retailers like Sa Sa International and Watsons have recently shut down their physical stores in mainland China, facing intense market pressures. The industry has seen a growing trend of ownership changes and store closures that could signal deeper competitive alterations as retailers seek to navigate a challenging economic landscape.