Walgreens Boots Alliance, the US pharmacy chain, is being taken private by Sycamore Partners in a deal worth $10 billion. The move marks the end of the company’s nearly century-long association with public markets.
The company was founded by Charles R. Walgreen Sr. in 1901, starting with a single drugstore in Chicago. It has since grown to become one of the largest pharmacy chains in the US, with over 9,000 stores across the country. Walgreens went public in 1927 and has since undergone significant changes, including its merger with Alliance Boots in 2014.
In recent years, the company has faced increasing competition from online retailers and changing consumer spending habits. In response, Walgreens has been exploring cost-cutting measures, including shutting unprofitable stores. The company nearly halved its dividend payout last year to conserve cash amid low consumer spending.
Walgreens’ struggles have led to a decline in its stock price, and the company was briefly removed from the Dow Jones Industrial Average index. However, with Sycamore Partners’ acquisition, Walgreens is set to continue operating as a private company, which may provide the stability it needs to revamp its business strategy.
The deal marks the end of an era for Walgreens, which has been in public markets since 1927. As the pharmacy chain moves into the private equity sector, it remains to be seen how this will impact its operations and future growth prospects.
Source: https://www.reuters.com/business/healthcare-pharmaceuticals/walgreens-pharmacy-behemoth-distressed-retailer-2025-03-07