Walgreens taken private by turnaround expert 

DEERFIELD, Ill., and NEW YORK – Walgreens Boots Alliance has entered into a definitive agreement to be acquired by an entity affiliated with private equity firm Sycamore Partners for up to $23.7 billion. 

Leveraging WBA’s health care expertise and Sycamore’s established leadership in retail and consumer services, WBA will be better positioned to become the first choice for pharmacy, retail and health services, the companies say. 

“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,” said Tim Wentworth, CEO, WBA. “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 transaction agreement does provide for a so-called “go-shop” period, during which WBA, with the assistance of Centerview Partners, its financial advisor, will actively solicit, and depending on interest, potentially receive, evaluate and enter into negotiations with parties that offer alternative proposals. The initial go-shop period is 35 days. 

The WBA board of directors, with Stefano Pessina and John Lederer recused from the deliberations and approval, has unanimously approved the proposed transaction. The transaction is expected to close in the fourth quarter calendar year 2025, subject to customary closing conditions, including approval by WBA shareholders and the receipt of required regulatory approvals. 

Upon completion of the transaction, WBA’s common stock will no longer be listed on the Nasdaq Stock Market, and WBA will become a private company. 

WBA will continue to operate under Walgreens, Boots and its trusted portfolio of consumer brands. It will maintain its headquarters in the Chicago area and continue contributing to the communities in which it operates.