Walgreens Boots Alliance has agreed to be acquired by private equity firm Sycamore Partners in a deal valued at just under $10 billion, the company announced Thursday. Sycamore will pay $11.45 per share, with an additional $3 per share possible under certain conditions.
Taking the pharmacy giant private will give it more flexibility to overhaul its struggling business without pressure from Wall Street. Walgreens, which has been publicly traded since 1927, has been battling rising costs, lower prescription reimbursements, and a shift in consumer spending habits.
As part of its ongoing turnaround plan, the company is already closing 1,200 of its 8,500 U.S. stores. Additionally, Walgreens has been exploring the sale of its VillageMD clinic business and cutting its stake in drug distributor Cencora to preserve cash.
The deal, which includes debt, brings the total transaction value to nearly $24 billion. Walgreens said the buyout price represents a 30% premium over its share price in December when reports of a sale first emerged.
The acquisition follows a challenging period for the company, which saw its stock price plummet by nearly two-thirds last year. In January, Walgreens suspended its quarterly dividend for the first time in over 90 years, signaling a focus on stabilizing its financial position.
Walgreens operates nearly 3,700 international stores in countries including the UK, Mexico, Thailand, and Ireland. The buyout marks a major shift in the pharmacy landscape, as competitors like CVS Health and Walmart continue to dominate the market.
