Walgreens Goes Private in a Shocking Up to $24 Billion Deal!
Walgreens Boots Alliance, a giant in the drugstore industry, is set to be taken private in a deal valued up to $23.7 billion. This marks the end of nearly 100 years as a publicly traded company, after facing a series of challenges, including store closures and a massive drop in market value.
A Long Road to Private Ownership
Private equity firm Sycamore Partners has agreed to buy Walgreens for $11.45 a share in cash. The total deal value could rise to $23.7 billion, including debt and potential future payouts. Walgreens’ shares have taken a hit in recent years, losing nearly 80% of their value, but recent reports of the company’s potential sale have caused a slight boost in share prices.
Struggles in the Marketplace
Walgreens has faced tough competition from rivals like CVS and Rite Aid, with thousands of store closures and declining prescription reimbursements. In October, Walgreens announced it would close 1,200 locations, increasing from an earlier plan to shut down 300 underperforming stores. This is part of a larger effort to optimize its operations. Currently, Walgreens operates around 8,500 locations, but it has seen its market value plummet from $100 billion a decade ago to just $9.5 billion.
The company’s smaller size compared to competitors like CVS has limited its ability to negotiate favorable deals with insurers and health care entities, further contributing to its struggles.
Looking Ahead with Sycamore Partners
With Sycamore Partners at the helm, it aims to turn things around. CEO Tim Wentworth believes that the company’s transformation will be better managed privately, with the expertise of Sycamore’s team guiding the process. Despite facing numerous challenges, including competition from Amazon and lower prescription reimbursements, there may be hope for growth under private ownership.
The deal is expected to close by the fourth quarter of 2025, bringing a new chapter to Walgreens’ long history.
