Walgreens Going Private in $23.7B Agreement
Walgreens Boots Alliance, Inc. (WBA) confirmed reports that it is going private. On March 6, the global organization announced that it has agreed to be acquired by an entity affiliated with New York-based private equity firm Sycamore Partners. The WBA board of directors approved the deal, which is estimated at $23.7 billion and is expected to close during the fourth quarter of 2025.
A public company since 1927, Walgreens will continue to operate under that name as part of a portfolio of brands that also includes the UK-based Boots chain. The headquarters will remain in the Chicago-area suburb of Deerfield, too.
Current shareholders will receive total consideration consisting of $11.45 per share in cash at closing of the Sycamore transaction and one non-transferable to receive up to $3.00 in cash per WBA share from future monetization of WBA’s debt and equity interests in VillageMD.
The agreement follows a sometimes-tumultuous past few years, as Walgreens announced more than 1,200 store closures and stocks were up and down. Leaders say that the company is better positioned to maintain leadership in pharmacy, retail and health services.
“Throughout our history, Walgreens Boots Alliance has played a critical role in the retail healthcare ecosystem. We are focused on making healthcare delivery more effective, convenient and affordable as we navigate the challenges of a rapidly evolving pharmacy industry and an increasingly complex and competitive retail landscape,” said WBA CEO Tim Wentworth. “While we are making progress against our ambitious turnaround strategy, 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. The WBA Board considered all these factors in evaluating this transaction, and we believe this agreement provides shareholders premium cash value, with the ability to benefit from additional value creation going forward from monetization of the VillageMD businesses.”
Stefan Kaluzny, managing director of Sycamore Partners, said the agreement will benefit many stakeholders. “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. Sycamore has deep respect for WBA’s talented and dedicated team members, and we are committed to stewarding the Company’s iconic brands,” he said. “This transaction reflects our confidence in WBA’s pharmacy-led model and essential role in driving better outcomes for patients, customers and communities.”
WBA will release its second quarter financial report on April 8.
Deerfield, Ill.-based Walgreens currently operates nearly 9,000 retail locations across the United States, Puerto Rico and the U.S. Virgin Islands. The company is No. 6 on The PG 100, Progressive Grocer’s 2024 list of the top food and consumables retailers in North America.
