Walgreens Boots Alliance Inc. (NASDAQ: WBA) is set to go private after nearly a century as a publicly traded company. Private equity firm Sycamore Partners has agreed to acquire Walgreens in a leveraged buyout worth up to $23.7 billion, including debt and potential future payouts.
Under the deal, Sycamore will pay $11.45 per share in cash, with Walgreens shareholders eligible for up to an additional $3 per share based on the sale of the company’s primary-care assets. Factoring in assumed debt, the transaction could reach a total valuation of $24 billion.
Walgreens CEO Tim Wentworth emphasized that while the company has made progress on its turnaround strategy, transitioning to a private entity will allow for more efficient restructuring. He highlighted Sycamore’s expertise in retail turnarounds as a key advantage for the company’s future growth.
The acquisition follows Walgreens' struggles in the competitive pharmacy and retail healthcare industry. By going private, Walgreens aims to streamline operations and navigate market challenges without the pressures of public trading.
The deal includes a 35-day “go-shop” period, allowing Walgreens to seek alternative offers. Pending regulatory approvals, the acquisition is expected to close in the fourth quarter of this year. Investors will closely monitor the transaction, marking one of the largest leveraged buyouts in recent years.
