Boots Chairman Stefan Pessina ups stake in WBA amid $10bn takeover

Boots Chairman Stefan Pessina is set to significantly increase his stake in the Walgreens Boots Alliance (WBA) amid the proposed $10 billion (£7.5 billion) takeover of the group by private equity firm Sycamore.

Pessina, the 83-year-old executive who previously owned a 17% share in WBA, is expected to increase his stake in the company to nearly 50%, according to The Times.

Sycamore will take a majority shareholding. The exact details of the post-takeover ownership structure are still being finalised by advisers following the deal's announcement in March.

It marks the end of a challenging period for WBA on the stock market. When the partnership was formed a decade ago, it was valued at over $100 billion - but has since lost 90% of its value.

Neither side has thrived since the 2014 acquisition. Walgreens has struggled against fierce online competition, facing declining sales and mounting debt. Meanwhile, Boots has closed hundreds of stores.

While Sycamore has pledged to maintain WBA’s iconic brands - including Walgreens, Boots, and other consumer services - the future of Boots within the firm’s portfolio remains unclear.

Walgreens Boots Alliance was formed through the combination of Walgreens and Alliance Boots in 2014. At the time, the deal brought together two retail giants with "iconic brands, complementary geographic footprints, shared values and a heritage of trusted healthcare services through pharmaceutical wholesaling and community pharmacy care, dating back more than 100 years".

News of a deal first emerged in December, following WBA's previous attempt to go private in 2019. Since then, the company has faced challenges across its pharmacy operations.