Walgreens Boots Alliance (WBA) has agreed to be acquired by private equity firm Sycamore Partners, in a move that would lead to Walgreens becoming privately owned.
In a March 6 announcement, Walgreens (Nasdaq: WBA) said the value of the transaction “represents up to $23.7 billion” and described New York-based Sycamore Partners as “specializing in retail, consumer and distribution-related investments.”
“WBA shareholders will receive total consideration consisting of $11.45 per share in cash at closing of the Sycamore transaction and one non-transferable right to receive up to $3.00 in cash per WBA share from the future monetization of WBA’s debt and equity interests in Village MD, which includes the Village Medical, Summit Health and CityMD businesses,” Walgreens said in the announcement. “Leveraging WBA’s health-care expertise and Sycamore’s established leadership in retail and consumer services, WBA will be better positioned to become the first choice for pharmacy, retail and health services.”
‘Better managed as a private company’
“Throughout our history, Walgreens Boots Alliance has played a critical role in the retail health-care ecosystem,” said Tim Wentworth, Walgreens CEO, in the announcement. “We are focused on making health-care 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.
“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.”
Wentworth added that Sycamore Partners “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.”
“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.”
WBA’s board of directors unanimously approved the acquisition. The Walgreens and Boots names — the latter being the company’s international brand — will continue to be used.
The announcement said the acquisition should close in the fourth quarter of 2025, subject to closing conditions including approval by shareholders. WBA’s common stock won’t be listed on the Nasdaq stock market once the transaction is completed.
