Walgreens Boots Alliance announced March 6 that it’s going private, entering into a definitive agreement for an acquisition.
Sycamore Partners, a private equity firm based in New York, is making the Walgreens acquisition with a related entity for a total transaction value that represents up to $23.7 billion, the companies announced.
Tim Wentworth, CEO, Walgreens
Walgreens has about 12,500 retail locations across the U.S., Latin America and Europe. It also employs about 311,000 people across eight countries under the brands Walgreens, Boots, Duane Reade, No7 Beauty Company and Benavides.
“We are focused on making healthcare delivery more effective, convenient and affordable as we navigate the challenges of a rapidly evolving pharmacy industry and an increasingly complex and competitive retail landscape,” said Tim Wentworth, Walgreens CEO, in a statement. “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.”
The deal also includes a “go-shop” period in which Walgreens has 35 days to evaluate and enter into negotiations with parties offering alternative proposals.
Walgreens Boots Alliance Inc. ranks No. 14 overall in the Top 2000 Database. The database is Digital Commerce 360’s ranking of North America’s leading online retailers by their annual web sales.
Prior to the Sycamore Partners acquisition deal, Digital Commerce 360 projected Walgreens’ online sales will reach $10.38 billion in 2025. Walgreens is currently the largest retailer in the Top 2000’s Health & Beauty category.
Walgreens Boots Alliance web sales by year
Details about Walgreens going private
Walgreens’ board of directors, with two of them recused, unanimously approved the proposed acquisition by Sycamore Partners. The companies said they expect to close the acquisition deal — through which Walgreens would be going private — in the fourth quarter of 2025, pending regulatory approval. The transaction is not subject to a financing condition, as Sycamore Partners “has received fully committed financing for the transaction.”
As a result, Walgreens will still report its fiscal Q2 2025 earnings, filing its quarterly report April 8, 2025.
“This transaction reflects our confidence in WBA’s pharmacy-led model and essential role in driving better outcomes for patients, customers and communities,” said Stefan Kaluzny, managing director of Sycamore Partners, in the statement.
Walgreens shareholders will receive $11.45 per share when Sycamore Partners closes the acquisition deal. Shareholders will also receive up to $3 in cash per Walgreens share from the future monetization of the retailer’s debt and equity interests in VillageMD, which includes the Village Medical, Summit Health and CityMD businesses, the companies announced.
That $3 per share is non-transferable. Together with the cash consideration, it comprises the $11.45 in total consideration.
The cash consideration represents a 29% premium over Walgreens’ share price at closing on Dec. 9, 2024 ($8.85). Meanwhile, the total consideration represents a premium of up to 63% over that closing share value.
Dec. 9 is the day before the first media reports of the potential transaction, the companies said.
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