Walgreens Boots Alliance announced on Thursday that it had agreed to be acquired by private equity firm Sycamore Partners in a $10 billion deal, taking the struggling pharmacy chain private. Walgreens has faced declining prescription reimbursements and falling sales at its retail locations for years, a trend affecting major pharmacy chains. After expanding their brick-and-mortar presence, pharmacy companies find it harder to profit from selling prescriptions due to pressure from middlemen. Cautious consumer spending amid inflation, along with competition from Amazon and Walmart, has also hurt pharmacies’ sales of household items. Walgreens, which owns Duane Reade and Boots pharmacies, has been closing stores, with hundreds more closures planned. The buyout follows a nearly 50% drop in the company’s share price over the past year. Its market value, once over $100 billion, fell below $8 billion before takeover rumors emerged late last year. Sycamore has agreed to pay $11.45 per share, an 8% premium over Thursday’s closing price. Despite reporting a net loss of $8.6 billion for the 2024 fiscal year, Walgreens beat earnings and revenue expectations in its most recent quarter ending in November. — news from The New York Times
