Walgreens Boots Alliance, the US-based pharmacy chain, has agreed to be acquired by private equity firm Sycamore Partners in a $10 billion deal. The acquisition will take the struggling company out of public markets and follow a significant drop in its share price over the past year.
The company has faced declining prescription reimbursements, falling sales at retail locations, and increased competition from retail giants like Amazon and Walmart. To address these challenges, Walgreens has been closing stores, with hundreds more set to be shuttered in the coming years.
Sycamore Partners has agreed to pay $11.45 per share for Walgreens’ outstanding shares, representing an 8% premium over Thursday’s closing price. The acquisition is expected to close in the fourth quarter of 2025.
Analysts have attributed the company’s struggles to its own strategies and leadership. The company’s previous chief executive resigned after a little more than two years in the post, leading some industry analysts to suggest that the chain’s leaders should have focused on improving the consumer experience at their stores and offering private-label products for groceries and other essential items.
Sycamore Partners focuses on consumer and retail investments, but the deal with Walgreens expands its portfolio into healthcare. The firm has previously invested in brands such as Hot Topic and Ann Taylor.
This acquisition marks a significant shift for Walgreens, which has faced declining profits and increased competition in recent years. As the company transitions to private ownership, analysts will be watching closely to see how Sycamore Partners addresses the challenges facing Walgreens’ struggling pharmacy chain.
Source: https://www.nytimes.com/2025/03/06/business/walgreens-buyout.html