Mr. John Varnell reports

FAIRFAX PARTNERS WITH WITTINGTON INVESTMENTS IN ACQUISITION OF THE BOOTS GROUP

Fairfax Financial Holdings Ltd. has entered into agreements to partner with Wittington Investments Ltd., the holding company of the Weston family based in Canada, to acquire The Boots Group, the leading pharmacy and health and beauty retailer in the United Kingdom and Ireland, for a total purchase price of approximately $8.9-billion (U.S.) (inclusive of assumed debt).

"We are very pleased to partner with Galen Weston and the Wittington team to acquire Boots, a leading historic brand in the United Kingdom and Ireland," said Prem Watsa, chairman and chief executive officer of Fairfax. "For many years, the Westons have grown and developed some of the most successful retail brands in Canada, including in pharmacy and beauty, and we are very confident that Wittington, with its experienced and capable management group, will be an excellent steward of the Boots business and a terrific partner to Fairfax."

"Boots is one of Britain's most enduring businesses with a rich heritage, a trusted name and a vital role in everyday life across the U.K. and Ireland," said Galen Weston. "We have great respect for Boots' legacy and leading market position. We see a meaningful opportunity to make a great business even better through stable, long-term ownership, capital investment and renewed operating focus required to serve customers with excellence for generations to come. We are delighted to partner with Fairfax who brings an extensive track record of long-term investing and ownership in leading retail brands and who shares our conviction in both building great businesses and in Boots' future."

In connection with the transaction, Fairfax entered into an equity commitment letter pursuant to which it has agreed to provide, or cause an affiliate of it to provide, up to approximately $2.3-billion (U.S.) for the purposes of satisfying the purchase price to be paid for Boots. Following the closing of the transaction, it is expected that Fairfax will own 50 per cent of the equity of Boots, with Wittington having operational control and Mr. Weston serving as chair of Boots. The transaction is subject to customary closing conditions and is expected to be completed in the first quarter of 2027. The transaction does not include Boots' businesses in Germany and Mexico, which will be retained by their current owner.

Wittington Investments is the private holding company for the Weston family based in Canada. It is the controlling shareholder of George Weston Ltd. and, through it, Loblaw Companies Ltd. and Choice Properties. With more than 2,800 locations, Loblaw is Canada's largest grocery retailer and owns Shopper Drug Mart, the nation's largest pharmacy, health and beauty business. Choice Properties, Canada's largest real estate investment trust, has a portfolio composed of approximately 700 high-quality properties across three strategic asset classes, including 44.6 million square feet of necessity-based retail.

Fairfax is a holding company which, through its subsidiaries, is primarily engaged in property and casualty insurance and reinsurance and the associated investment management.

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