We are advising Sycamore Partners and The Boots Group on the transaction

Davis Polk is advising Sycamore Partners and its portfolio company, The Boots Group, on the sale of Farmacias Benavides to Farmacias del Ahorro. The Boots Group is the controlling shareholder of Farmacias Benavides and is majority owned by Sycamore Partners, in partnership with Stefano Pessina and his family. The transaction is subject to customary closing conditions, including regulatory approvals.

Founded more than 100 years ago, Farmacias Benavides is one of Mexico’s leading pharmacy retailers and a trusted brand among Mexican consumers. The company operates more than 1,100 stores and more than 450 primary care clinics, with a strong presence in the North, East and Center of Mexico.

The Boots Group includes pharmacy-led health and beauty retail businesses globally, along with a pharmaceutical wholesale operation in Germany. Through trusted brands, including Boots, No7 Beauty Company and Farmacias Benavides, the company focuses on helping people look and feel their best by delivering convenient high-quality healthcare and retail services. The Boots Group’s pharmaceutical wholesale business in Germany operates under the Alliance Healthcare Deutschland and GEHE brands and supports over 11,000 pharmacies nationwide through modern logistics and digital healthcare services.

Sycamore Partners is a private equity firm based in New York, founded in 2011. The firm specializes in consumer, distribution and retail-related investments and partners with management teams to improve the operating profitability and strategic value of their businesses. With approximately $18 billion of assets under management, Sycamore Partners’ investors include leading endowments, financial institutions, family offices, pension plans and sovereign wealth funds.

Founded in 1991, Farmacias del Ahorro is one of Mexico’s largest pharmacy chains, with approximately 2,000 stores nationwide, all of which offer free medical consultations and other free healthcare services.

The Davis Polk corporate team includes partners Brian Wolfe and Michael Senders and associate Miranda Kantor. Partner Jennifer S. Conway, counsel Neil Sharpe and associate Harriet Jupp are providing executive compensation advice. Partner David H. Schnabel is providing U.S. tax advice. Partner Dominic Foulkes and counsel Nathan Langford are providing U.K. tax advice. Members of the Davis Polk team are based in the New York and London offices.

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