Shareholders of Walgreens Boots Alliance (WBA) have overwhelmingly approved the drugstore chain’s $10 billion acquisition by private equity firm Sycamore Partners.
National pharmacy chains like Walgreens, CVS, and Rite Aid are facing a tough environment marked by changing consumer habits, declining pharmacy reimbursements, and rising costs. Walgreens plans to close over 1,000 stores by 2027, while Rite Aid filed for bankruptcy protection in May—its second filing in two years.
Under the deal terms first announced in March, Walgreens shareholders will receive $11.45 per share from Sycamore Partners, the companies confirmed Friday. They may also be eligible for up to an additional $3 per share from future proceeds related to Walgreens’ debt and equity interests in its VillageMD clinic business.
The buyout will take Walgreens private, providing the company with greater flexibility to implement changes without the pressure of Wall Street expectations. Founded in 1901, Walgreens has been publicly traded since 1927.
“With Sycamore’s partnership, we will be better positioned to accelerate our turnaround strategy,” said Walgreens CEO Tim Wentworth.
Following the announcement, Walgreens shares remained largely flat around $11.50, a significant drop from over $30 per share just two years ago.
Last fall, Walgreens revealed plans to shutter 1,200 of its approximately 8,500 U.S. locations. The Deerfield, Illinois-based company had already closed about 1,000 stores since expanding to nearly 9,500 locations after acquiring some Rite Aid stores in 2018.
According to reports from The Times, 96% of investors supported the deal at a recent shareholder vote. The transaction is expected to close in late 2025, subject to regulatory approval. This acquisition marks a significant change for Walgreens, which boasted a market valuation approaching $100 billion less than ten years ago.
Industry experts suggest the deal could lead to a renewed sale or spin-off of Boots, which has faced ongoing challenges in the UK retail and pharmacy sectors. Sycamore, known for its extensive retail and consumer portfolio, is likely to evaluate strategic options for Boots, including a potential divestment.
This would be Boots’ third attempted sale since 2022.
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