Walgreens nears US $10 billion deal to go private

USA – Walgreens Boots Alliance (WBA) is close to finalizing a US $10 billion deal with private equity firm Sycamore Partners to take Walgreens off the public market.

The deal, which has been in discussion since December, is expected to value Walgreens at around $11.30 to $11.40 per share in cash.

Founded in 1901, Walgreens has long been a trusted pharmacy chain in the U.S. However, its struggles have intensified in recent years.

The company merged with UK-based Boots in 2014 to form WBA, expanding its global presence. Unfortunately, the merger did not yield the expected benefits, and Walgreens has faced continuous financial setbacks.

Over the past decade, WBA’s stock has plummeted, leading to the closure of nearly 2,000 locations.

In October, the company announced plans to shut down another 1,200 underperforming stores over the next three years. This year, it also suspended its quarterly dividend to preserve cash.

The company has also faced legal troubles. In 2024, the U.S. Department of Justice filed a lawsuit against Walgreens, accusing it of improperly handling opioid sales. This controversy further damaged the company’s reputation and financial stability.

Meanwhile, rising inflation and decreased consumer spending have made it difficult for Walgreens to grow its retail business. U.S. retail sales for the first quarter of 2025 declined by 4.6% compared to the previous year.

Despite these struggles, news of the Sycamore deal has driven Walgreens’ stock up by 10% this year.

The Wall Street Journal reported that if the acquisition is finalized, Sycamore would retain Walgreens’ core U.S. retail business but could sell or take public other parts of the company.

The transaction is expected to be completed as early as Thursday, unless unforeseen issues arise.

Walgreens and Sycamore have not yet responded to requests for comment. If the deal goes through, it will mark a major shift for Walgreens, transitioning from a publicly traded company to private ownership for the first time in nearly a century.