Walgreens go out for private $ 10 billion, agreement with Sycamore Partners

Fighting the pharmacy network Walgreens goes privately.

Company on Thursday said this ink transaction With a private Sycamore Partners capital company, which will remove it from the public market at the expense of about $ 10 billion.

Sycamore will pay $ 11.45 per share for Walgreens, representing approximately 8% of the premium by closing the shares on Thursday. In the future, shareholders can also receive up to $ 3 per share of Walgreens primary care enterprises, including rural medical, summit and Citymd.

Walgreens said the total cost of the transaction would be up to $ 23.7 billion when the debt and possible payments are on the line.

Walgreens and Sycamore expect to close the work in the fourth quarter of this year. Walgreens’s stock jumped over 5%on Thursday before stopping.

The historic transaction ends with a violent run by Walgreens as a public campaign that began in 1927. As of Thursday morning, the company increased by more than 15% in 2025, but the shares have still decreased by more than 48% over the past three years.

“While we are progressing on our ambitious turn strategy, creating considerable value, focus and changes that are better managed as a private company,” Tim Ventvort, who entered the role in 2023, said in the release of Walgreens on Thursday. “Sycamore will provide us with the experience and experience of a partner with strong results of successful retail.

Stefan Kaluzin, Head Director Sycamore, said that the transaction reflects the firm’s confidence to the “Walgreens Pharmacy Model” and a significant role in enhancing results for patients, clients and communities. “

Walgreens will support its headquarters in Chicago. Currently, the company has more than 310,000 employees worldwide and 12,500 retailers in the US, Europe and Latin America, the release reports. On April 8, Walgreens still plans to release profits in the second quarter.

Walgreens market value reached a peak in 2015 more than $ 100 billion, as investors have been confident in health and expansion plans, making it one of the most famous American retail companies.

But the market restriction of the company declined to $ 8 billion at the end of 2024 due to competition from the main competitors of CVS, grocery networks, retailers for large boxes and AmazonAlong with many problems. Walgreens was squeezed out of the COVID pandemic, the pharmacy compensation of the wind, softer consumer costs and problematic impetus to medical care.

Both Walgreens and CVS turned from perennial extensions to the store to close hundreds of trading pharmacy places across the United States to increase profits. But unlike CVS, which diversified its business model, offering insurance and pharmacy benefits, Walgreens has greatly doubled on its contagious retail pharmaceutical business.

In October Walgreens said he plans close to about 1200 of their pharmacies Over the next three years, including 500 in the financial 2025. There are about 8 700 seats in Walgreens, a quarter of which is not unprofitable. The company also scale its impetus to primary medical care, reducing its stake in the Villagemd provider.

Walgreens started the health veteran Tim Ventwort as a new CEO in the late 2023 to help regain the foundation.

The company was reportedly considered as a potential target target in the past.

In 2019, the KKR private capital firm did approximately Redemption of 70 billion dollars Offer Walgreens, Financial Times and Bloomberg at the time.