Walgreens Boots Alliance (WBA) has finalized a deal with private equity firm Sycamore Partners to take the company private after being in the stock market for nearly 100 years.
Sycamore will pay $11.45 per share in cash for the Walgreens business, according to a company announcement. Shareholders can receive up to $3 more per share in the future from sales of Walgreens’ primary business, including Village Medical, Summit Health and City MD. Although the business’s equity value is $10 billion, the transaction value of the deal can reach up to $23.7 billion. The agreement is subject to customary closing conditions, including receiving required regulatory approvals and final buy-in from WBA shareholders.
The deal is expected to close by Q4 of the 2025 fiscal year. However, the transaction agreement includes a “go-shop” period. During this 35-day period, WBA and its financial advisor Centerview Partners will actively solicit and potentially receive, evaluate and enter negotiations with parties offering alternative proposals.
After the acquisition, WBA will continue to operate under Walgreens, Boots and its portfolio of consumer brands. The WBA headquarters in Chicago will remain open and continue serving the local communities in which its 12,500 locations operate as it works to navigate “the challenges of a rapidly evolving pharmacy industry and an increasingly complex and competitive landscape,” Walgreens CEO Tim Wentworth said in a statement.
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Walgreens CEO Reaffirms ‘Focus’ Required for a Meaningful Turnaround
Although Walgreens attempted to bolster its digital capabilities by hiring a new Head of Digital, growing its retail media offering and focusing on B2B healthcare services, the company struggled to maintain its operating model. In October 2024, Wentworth reported that the company would close 1,200 stores over three years, including 500 in the 2025 fiscal year alone, to focus on its “legacy strength as a pharmacy-led company.”
Wentworth is now doubling down on how vital this focus is, noting that “meaningful value creation will take time, focus and change that is better managed as a private company. Sycamore will provide us with the expertise and experience of a partner with a strong track record of successful retail turnarounds. Sycamore’s portfolio of retail investments includes Ann Taylor Loft, Belk, Hot Topic, Lane Bryant, The Limited, Staples and Stuart Weitzman.
Walgreens initially went public on the stock market in 1927, 26 years after its first store opened in 1901. As the company continued negotiations with Sycamore in January, it suspended its quarterly dividend to stockholders for the first time.
“For nearly 125 years, Walgreens, and for 175 years, Boots, along with their portfolio of trusted brands, have been integral to the lives of patients and customers,” said Stefan Kaluzny, Managing Director of Sycamore Partners. “Sycamore has deep respect for WBA’s talented and dedicated team members, and we are committed to stewarding the Company’s iconic brands. This transaction reflects our confidence in WBA’s pharmacy-led model and essential role in driving better outcomes for patients, customers and communities.”
