Walgreens to Be Taken Private in $10 Billion Deal with Sycamore Partners

The struggling pharmacy chain aims to revamp its business under private ownership after years of financial losses and store closures.

Walgreens Boots Alliance has agreed to a $10 billion acquisition by private equity firm Sycamore Partners, valuing shares at $11.45 each with potential for up to $3 more per share based on future asset sales.
The deal will remove Walgreens from the public market, allowing it to focus on its turnaround strategy without pressure from Wall Street.
Walgreens has been grappling with financial challenges, including declining prescription reimbursements, rising costs, and underperforming retail locations, leading to plans to close 1,200 U.S. stores by 2027.
The acquisition includes Sycamore's commitment to Walgreens’ pharmacy-led model and maintaining its Chicago-area headquarters and global operations.
The company’s push into primary care, including its VillageMD stake, has been scaled back, reflecting difficulties in sustaining its healthcare expansion efforts.