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Boots UK will sit at the heart of a new international business carved out of the US-based Walgreens Boots Alliance following a private equity takeover, it has been revealed.  

The announcement earlier today (August 28) that a separate entity named ‘the Boots Group’ has been created will spark speculation that new owners Sycamore Partners will seek to sell off the UK business and focus on the struggling US Walgreen chain of pharmacies. 

The break-up will also see Walgreens, US physician chain VillageMD and other subsidiaries repositioned as standalone companies.

The news comes as Sycamore completes its buyout of WBA, which was approved by shareholders at a meeting in July.  

The Boots Group will be registered and headquartered in the UK and will retain an existing leadership team headed up by executive chairman Stefano Pessina and his wife, Ornella Berra, who is to become chief executive.

The company will comprise Boots UK & Ireland, Boots Opticians and No7 Beauty Company, as well as retail pharmacy operations in Thailand, Mexico, Germany and China. 

Mr Pessina 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 it already very successful record of growth.”

Ms Barra said Sycamore’s retail experience would help the new group “deliver against our strategy of being a leader in our markets and the communities we serve”. 

Stefan Kaluzny, managing director at Sycamore, commented: “The Boots Group is a remarkable institution with deep roots in its communities around the world. 

“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.”