Walgreens in $10 billion deal to go private
Walgreens Boots Alliance is being acquired by a private equity firm.
The struggling retail pharmacy giant has entered into an agreement with Sycamore Partners to be acquired for an equity value of around $10 billion. Upon completion of the deal, Walgreen’s common stock will no longer be listed on the Nasdaq Stock Market, and it will become a private company.
Sycamore will pay $11.45 per share in cash for Walgreens, a roughly 8% premium to the stock’s closing price on Thursday. Shareholders could also receive up to $3 more per share in the future from sales of Walgreens’ primary-care businesses, which include Village Medical, Summit Health and CityMD.
The transaction is expected to close in the fourth quarter of 2025. Including debt and potential payouts, the total value of the deal would rise to $23.7 billion.
“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,” stated Walgreens CEO Tim Wentworth. “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.”
The company will continue to operate under Walgreens, Boots and its portfolio of consumer brands. Walgreens, which has some 12,500 retail pharmacy locations across the U.S., Europe and Latin America, will maintain its headquarters in the Chicago area.
“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.”
Walgreens, which has been publicly traded since 1927, has struggled in recent years amid low reimbursement rates for filing prescriptions, increased online competition and softer discretionary spending. It also has faced challenges in its expansion into health care.
The company has been working to cut costs and improve its profitability under Tom Wentworth, who took the reins as CEO in October 2023 following the abrupt departure of Rosalind Brewer after less than three years on the job. In October 2024, Walgreens announced plans to close 1,200 stores in its U.S. fleet of roughly 8,700 locations by the end of fiscal 2027. It also said it planned to close 60 underperforming VillageMD clinics and exit five markets as part of a comprehensive $1 billion cost-saving strategy.
[READ MORE: Walgreens’ Q1 tops estimates amid cost cuts]
Sycamore is known for its investments in retail and consumer brands. Its most recent retail acquisition was quick-service chain Playa Bowls, which was announced in September 2024.
Walgreens’ retail and consumer brands include Walgreens, Boots, Duane Reade, No7 Beauty Company and Benavides.
Advisors
Centerview Partners is acting as financial advisor, Kirkland & Ellis LLP is acting as legal advisor and Ropes & Gray LLP is acting as healthcare regulatory counsel to Walgreens. Morgan Stanley & Co. LLC was also a financial advisor, and provided a fairness opinion to the Walgreens board.
UBS Investment Bank is acting as lead financial advisor, Goldman Sachs and J.P. Morgan are acting as co-lead financial advisors, Citi and Wells Fargo are acting as financial advisors, Davis, Polk & Wardwell LLP is acting as legal counsel and Bass Berry & Sims PLC is acting as healthcare regulatory counsel to Sycamore Partners.
Debevoise & Plimpton LLP is acting as legal advisor to Stefano Pessina.
