Boots chair to hike stake to 50% following $10bn takeover deal

The chairman of Boots is reportedly set to hike his stake in Walgreens Boots Alliance to almost 50% as part of the group’s $10bn (£7.5bn) takeover deal, The Times has reported.While chair Stefano Pessina, who previously held a 17% stake in the Anglo-American group, will put in more money to increase his stake, new owner Sycamore will take a majority share, sources told The Times.

The precise details of the post-takeover ownership structure with the private equity group are reportedly still being finalised.

In March, it was confirmed that Walgreens Boots Alliance agreed to be acquired by Sycamore in a deal where the total transaction is worth $23.7bn (£18bn).

The transaction is expected to close in the fourth quarter calendar year 2025, subject to customary closing conditions, including approval by WBA shareholders and the receipt of required regulatory approvals.

Under the agreement the company will continue to operate under Walgreens, Boots and its portfolio of consumer brands.

Sycamore is a private equity firm specializing in retail, consumer and distribution-related investments. Current holdings include US companies such as Hot Topic, Staples and The Limited. 

Pessina previously established pharmaceutical group Alliance UniChem through a series of acquisitions, before merging with Boots in 2006.

He then joined forces with private equity firm KKR the following year to take the combined business private. 

Walgreens acquired the business in 2014, with Pessina serving as chief executive between 2015 and 2021.

Walgreens Boots Alliance has been contacted for further comment.