By Liz Moyer
Walgreens Boots Alliance has confirmed a $23.7 billion deal to be acquired by the private-equity firm Sycamore Partners.
The struggling drugstore chain operator said the deal is for $11.45 a share in cash, a 29% premium to its closing price on Dec. 9, before the first media reports of a potential transaction.
With the deal, the company said it would be "better positioned to become the first choice for pharmacy, retail, and health services." It will continue to operate under Walgreens, Boots, and other brands and maintain its headquarters near Chicago.
"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," said CEO Tim Wentworth.
Shareholders will receive the cash for shares plus up to $3 in cash per share representing the future sale of the company's debt and equity interests in VillageMD, a health clinic business that includes Village Medical, Summit Health, and CityMD.
With the sale of the VillageMD assets, the total deal consideration is a premium of up to 63% of Walgreens' share price on Dec. 9.
Walgreens shares rose 5.7% in after hours trading on Thursday. They are up 13.6% this year on speculation that a take-private deal was coming. The shares are down 49% over the past 12 months.
Write to Liz Moyer at liz.moyer@barrons.com
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March 06, 2025 18:15 ET (23:15 GMT)
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