Walgreens Goes Private in Historic $23.7 Billion Sycamore Partners Deal

Walgreens Boots Alliance announced Thursday that private equity firm Sycamore Partners will acquire the pharmacy giant in a deal valued up to $22 billion.

The agreement marks the end of Walgreens’ nearly century-long history as a publicly traded company. Sycamore Partners will pay $2 per share in cash, representing a 29% premium over December trading prices.

Shareholders will also receive rights to an additional $0.50 per share from future monetization of Walgreens’ healthcare ventures. The cash component values Walgreens at approximately $10 billion in equity.

The total transaction reaches $23.7 billion when including debt and potential future payments. This deal comes after Walgreens’ market value plummeted from nearly $100 billion a decade ago to about $9.5 billion today.

CEO Tim Wentworth, who took the helm in 2023, supported the transition to private ownership. “Meaningful value creation will take time and focus that is better managed as a private company,” Wentworth said. Sycamore will provide retail expertise to complement Walgreens’ healthcare knowledge.

Walgreens Agrees to Sycamore Buyout Amid Struggles

The pharmacy chain has struggled against fierce competition from online retailers and discount chains. Declining prescription reimbursements have further squeezed profits. Walgreens announced plans last October to close 1,200 underperforming stores over three years.

Sycamore Managing Director Stefan Kaluzny expressed confidence in Walgreens’ future. “We are committed to stewarding the company’s iconic brands,” Kaluzny stated. The firm specializes in retail and consumer investments rather than healthcare.

Walgreens will maintain its Chicago-area headquarters and continue operating under its established brand names. The agreement includes a 35-day period allowing Walgreens to seek alternative offers. Analysts remain skeptical about competing bids emerging.

The deal requires shareholder approval and regulatory clearance. Both companies expect the transaction to close in the fourth quarter of 2025. Walgreens shares jumped over 5% in after-hours trading following the announcement.