Walgreens Boots Alliance is set to be taken private in a deal valued at up to $23.7 billion, marking the end of its nearly 100-year run as a publicly traded company. The company, which went public in 1927, has struggled in recent years, seeing its market capitalization plummet and closing more than 10% of its locations.
Private equity firm Sycamore Partners has agreed to acquire Walgreens for $11.45 per share in cash. With debt and other potential future payouts, the deal could reach as much as $23.7 billion. Despite the decline in Walgreens’ share price—down nearly 80% over the past five years—shares have recently gained after news of the company’s negotiations to go private.
Sycamore Partners, known for its work in consumer and retail services, plans to continue operating Walgreens under its portfolio of brands, based out of the Chicago area. Tim Wentworth, CEO of Walgreens, expressed that turning the company around would be more effective as a private entity. He added that Sycamore would bring the expertise needed for the transformation.
Walgreens has faced significant challenges, including hundreds of store closures and decreasing prescription reimbursements, which have contributed to a sharp decline in its value—from $100 billion a decade ago to around $9.5 billion today. The company has been unable to keep pace with competitors like CVS, which benefits from larger scale and better bargaining power with insurers and healthcare providers.
In October 2023, Walgreens announced the closure of 1,200 stores, which represents about one in seven of its U.S. locations. This follows a 2024 announcement to shut down 300 underperforming stores as part of a multi-year optimization plan. Walgreens currently operates around 8,500 locations in the U.S.
The company expanded globally through acquisitions, including the purchase of Duane Reade in 2010 and the remaining stake in European drugstore chain Alliance Boots in 2014. Stefano Pessina, Walgreens’ executive chairman and largest shareholder, will reinvest his 17% stake in the company as part of the deal.
Analysts believe the sale to private equity could help unlock value for investors, though turning Walgreens around will be a long-term project due to its significant challenges across its healthcare, pharmacy, and retail divisions. Despite the challenges, there may be interest in Walgreens’ healthcare assets, especially as the industry shifts towards value-based care and cost management.
The deal is expected to close by the fourth quarter of 2025.