Walgreens Boot Alliance stated it will likely be acquired by non-public fairness agency Sycamore Companions in a $10 billion deal.
Sycamore has agreed to pay $11.45 per share in money for the ailing pharmacy chain. The overall worth of the transaction is as much as $23.7 billion.
Walgreen Boots has been struggling to regain its footing post-pandemic and shutting shops. Its inventory has misplaced 49.4 p.c over the previous 12 months.
Walgreens Boots owns Duane Reade in New York and Boots pharmacies in Britian.
“Whereas we’re making progress in opposition to our bold turnaround technique, significant worth creation will take time, focus and alter that’s higher managed as a non-public firm,” stated Tim Wentworth, chief govt officer of Walgreens Boot Alliance, in a press release launched Thursday.
“Sycamore will present us with the experience and expertise of a companion with a powerful observe document of profitable retail turnarounds,” he continued.
A Boots retailer within the U.Okay.
Courtesy
In December 2024, after studies emerged that Walgreens Boots was in talks to be acquired by Sycamore, the retailer’s inventory shot up 18 p.c.
Final 12 months, Walgreens Boots stated it deliberate to shutter about 1,200 shops over the following three years, together with about 500 in fiscal 2025.
The transaction with Sycamore is anticipated to shut within the fourth quarter of this 12 months. As soon as it’s finalized, Walgreen Boots’ inventory will now not be listed on the Nasdaq Inventory Market and turn out to be a non-public firm.
U.S. pharmacy chains have been beneath mounting strain. Walgreen Boots has additionally had quite a few management adjustments.
Most just lately, in October 2023, Walgreens tapped Wentworth as its new CEO, who took over from Roz Brewer as the corporate moved additional away from its drugstore origins and into well being care.