Walgreens Is Going Private in Deal Worth up to $24 Billion

Walgreens has become a private company after its acquisition by an entity affiliated with Sycamore Partners, a firm specializing in retail, consumer, and distribution-related investments. The total value of the transaction is worth up to $23.7 billion.

Per a press release, the partnership between Walgreens and Sycamore will allow the company to have a better position in the marketplace, allowing it to grow to become the first place consumers go for pharmacy, health, and retail services. Merging Walgreens’ healthcare expertise and Sycamore’s retail leadership will make this possible.

The company will continue to operate under Walgreens, and it will maintain its Chicago headquarters. It will also continue to operate as usual, ensuring its customers, patients, communities, and team members receive uninterrupted care and treatment.

Walgreens to go private in roughly $10 billion deal with Sycamore Partners https://t.co/e8K1rOdCS4

— CNBC (@CNBC) March 6, 2025

Tim Wentworth, chief executive officer of Walgreens Boots Alliance, said the merger will benefit customers in the long run. “Throughout our history, Walgreens Boots Alliance has played a critical role in the retail healthcare ecosystem. We are focused on making healthcare delivery more effective, convenient, and affordable as we navigate the challenges of a rapidly evolving pharmacy industry and an increasingly complex and competitive retail landscape.”

He continued, “While we are making progress against our ambitious turnaround strategy, meaningful value creation will take time, focus, and change that is better managed as a private company. Sycamore will provide us with the expertise and experience of a partner with a strong track record of successful retail turnarounds. The WBA Board considered all these factors in evaluating this transaction, and we believe this agreement provides shareholders premium cash value, with the ability to benefit from additional value creation going forward from monetization of the VillageMD businesses.”

“For nearly 125 years, Walgreens, and for 175 years, Boots, along with their portfolio of trusted brands, have been integral to the lives of patients and customers. Sycamore has deep respect for WBA’s talented and dedicated team members, and we are committed to stewarding the Company’s iconic brands,” said Stefan Kaluzny, managing director of Sycamore Partners. “This transaction reflects our confidence in WBA’s pharmacy-led model and essential role in driving better outcomes for patients, customers, and communities.”

What Will Happen Once Walgreens Becomes a Private Entity?

Once Walgreens becomes a private entity, WBA’s common stock will no longer be listed on the Nasdaq Stock Market. WBA will subsequently release its fiscal year 2025 second quarter financial results and file its quarterly report on Form 10-Q on April 8, 2025.

Walgreens is an integrated healthcare, pharmacy, and retail leader serving millions of customers and patients every day. The company has cared for its communities for 175 years and has 12,500 locations across the U.S., Europe, and Latin America. The company employs approximately 311,000 people, with a presence in eight countries and consumer brands including Walgreens, Boots, Duane Reade, No7 Beauty Company, and Benavides.

The company has been undergoing strategic changes, including store closures and investments in healthcare services, to adapt to shifting consumer habits and industry trends. Right now, Walgreens says stores and pharmacies will continue operating as usual, but the company is still working on a turnaround plan. That could mean more store closures or changes to services over time.