Monaco-based magnate Stefano Pessina tightens grip on Boots empire
Stefano Pessina © Wallgreens Boots Aliance
In a bold manoeuvre that demonstrates his legendary strategic vision, 83-year-old Stefano Pessina is set to increase his stake in Walgreens Boots Alliance to nearly 50 per cent as part of a takeover deal valued at £7.5 billion.
Stefano Pessina’s entrepreneurial saga adds another chapter. According to The Times, the billionaire chairman of Boots will substantially strengthen his control over the Anglo-American pharmacy giant. City sources reveal that Pessina, who previously held a 17 per cent stake in Walgreens Boots Alliance, will put in more money to take his shareholding to “almost 50 per cent” as part of a deal orchestrated by private equity group Sycamore.
The latter will, however, take a majority shareholding, according to the same sources. The precise details of the post-takeover ownership structure are still being thrashed out by advisers.
An empire at the crossroads
This move comes at a critical juncture for the Monaco resident’s pharmaceutical empire. Operating more than 1,800 UK stores and employing over 50,000 people, Boots is weathering a turbulent period, facing stiff online competition and a dramatic plunge in its stock market valuation.
“Globalisation as we have known it is over,” the Italian-Monegasque entrepreneur declared to Italian newspaper La Stampa last year, signalling a radical shift in his business philosophy. After decades of aggressive expansion, Pessina now appears to favour consolidating existing operations.
Twilight of a giant?
The Sycamore deal, announced in March at $11.45 per share, marks a turning point in the group’s history. In 2014, when Alliance Boots merged with Walgreens, the enterprise was valued at more than $100 billion. It has since shed 90 per cent of its value.
This operation, known internally as “Project Blazing Star,” nevertheless demonstrates the tycoon’s unwavering determination. As Sir Nigel Rudd, former chairman of Alliance Boots, asserts, “I would never bet against Stefano” – a sentiment shared by many business observers when facing this “ruthless” negotiator who, from his Monaco residence, continues to shape the future of his global pharmaceutical empire.