Sycamore Partners to take Walgreens private in $10B deal

Private equity firm Sycamore Partners has entered into a definitive agreement with Walgreens Boots Alliance to acquire the struggling retail pharmacy chain.

Sycamore has agreed to pay $11.45 per share for the company, an equity value of about $10 billion, according to the Wall Street Journal. Walgreens said in a press release that accounting for debt and future payouts, the value could reach up to $23.7 billion.

The confirmation follows weeks of speculation and rumors that Sycamore was planning to take over Walgreens and take the company private. Walgreens has struggled financially of late, battered by headwinds that have struck the retail pharmacy industry as well as challenges at its VillageMD unit.

Following the deal, the company will continue to operate as Walgreens, Boots and its “trusted portfolio of consumer brands,” according to the announcement. It will maintain its Chicago headquarters.

The parties expect that the sale will close in the fourth quarter of 2025, pending regulatory approvals and the OK from Walgreens’ shareholders.

The Journal reported in late February that Sycamore was considering breaking up WBA should it acquire the retailer, though the announcement does not touch on what the PE firm plans for Walgreens down the line.

It does, however, make clear that the team will be looking for a potential buyer for VillageMD. The company said it is looking to all options to improve the financial performance of the primary care provider, and will be forming a committee to explore various avenues.

The committee “intends to consider all paths available to maximize the value of these businesses, including actions to significantly enhance operational performance and strengthen the balance sheet of the businesses, ahead of any future monetization transaction or transactions,” per the press release.

Going private allows the company to put in the effort to right the ship without the pressure of the public market, executives said.

“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,” Walgreens CEO Tim Wentworth said in the press release. “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 VillageMDVillageMD businesses,” Wentworth said.

Sycamore has a history in the retail space, but the WSJ notes that Walgreens is the largest deal that it’s made in this arena.

Stefan Kaluzny, managing director of Sycamore Partners, said in the release that the firm is “committed to stewarding the company’s iconic brands.”

“For nearly 125 years, WalgreensWalgreens, and for 175 years, Boots, along with their portfolio of trusted brands, have been integral to the lives of patients and customers,” Kaluzny said. “This transaction reflects our confidence in WBA’s pharmacy-led model and essential role in driving better outcomes for patients, customers and communities.”

Walgreens said that the agreement also allows the company to take a “go shop” period lasting 35 days, where it will see if it can score a better offer. It said in the release that it cannot guarantee that a better deal will materialize.