Walgreens to Go Private in $23.7 Billion Deal After Years of Decline

Walgreens Boots Alliance will be taken private in a deal valued at up to $23.7 billion, bringing an end to its 97-year run as a publicly traded company.

The company announced that private equity firm Sycamore Partners will acquire Walgreens for $11.45 per share in cash. Including debt and other considerations, the full value of the deal could reach $23.7 billion.

The decision comes after Walgreens experienced a sharp decline in market value, losing nearly 80% of its stock value in the past five years. Once valued at $100 billion a decade ago, the company’s market capitalization has now fallen to around $9.5 billion.

Walgreens’ struggles stem from declining prescription reimbursements, increased competition from Amazon and other retail giants, and widespread store closures. In October 2023, the company announced plans to close 1,200 stores by 2027, which amounts to one in seven Walgreens locations.

Sycamore Partners, a firm specializing in retail turnarounds, says it will continue to operate Walgreens under its current branding while seeking ways to improve its financial health.

“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,” Walgreens CEO Tim Wentworth said in a statement.

Industry analysts believe Sycamore may sell off certain Walgreens assets, including its UK-based Boots pharmacy chain, to maximize returns.

Walgreens' competitors have fared better in recent years by integrating with healthcare providers. CVS’s acquisition of health insurer Aetna in 2018 helped position it more effectively in the market, while Walgreens made major investments in clinics like VillageMD, which required high spending on real estate, technology, and labor.

Retail challenges have also contributed to Walgreens’ decline, with big-box competitors like Target and Dollar General taking market share in everyday essentials.

The Walgreens transaction is expected to be finalized in the fourth quarter of 2025.

Credit: CNN Newsource

Explore: NBCPalmSprings.com, where we are connecting the Valley.