US pharmacy chain Walgreens Boots Alliance is set to become a private company after agreeing to be taken over by private equity firm Sycamore Partners for up to $23.7 billion. The deal marks the end of nearly 100 years as a publicly traded company, following a decline in its market value and store closures.
The company’s shares have lost nearly 80% of their value over the past five years, but have shown signs of improvement in recent months. Sycamore will acquire Walgreens’ shares at $11.45 each, according to a statement from the company. The deal also includes debt and potential future payouts, bringing the total valuation to up to $23.7 billion.
Walgreens has struggled with declining prescription reimbursements, store closures, and competition from Amazon and other retailers. The company’s smaller size compared to CVS makes it harder for it to negotiate prices with insurers, a key factor in its decline. In recent months, Walgreens announced the closure of over 1,200 locations, and about one in seven stores are expected to close by 2027.
Private equity firm Sycamore will continue to operate under its portfolio of brands out of the Chicago area. The company’s CEO, Tim Wentworth, believes that becoming a private company will allow for better management of the turnaround strategy and expertise from a partner with a strong track record of retail turnarounds.
Analysts expect Walgreens’ healthcare assets to be a key target in the coming years due to the increasing focus on value-based care and cost management. The deal is expected to close in the fourth quarter of 2025, bringing an end to nearly a century as a publicly traded company.
Source: https://edition.cnn.com/2025/03/06/economy/walgreens-private-deal/index.html