Walgreens Boots Alliance is set to be acquired by private equity firm Sycamore Partners in a deal valued at approximately $10 billion. Sycamore will pay $11.45 per share, representing an 8% premium over Walgreens’ closing price of $10.60 on Thursday. The transaction, which includes debt, has a total value of around $23.7 billion. Walgreens shareholders may also receive up to $3 more per share from future asset sales, including stakes in primary-care provider VillageMD. The company has struggled with declining cash flow, rising debt, and operational challenges, leading to a 90% drop in market capitalization since 2015. Sycamore, known for turning around distressed retailers like Staples and Talbots, plans to address Walgreens’ issues through cost-cutting measures and potential asset sales. Walgreens CEO Tim Wentworth acknowledged progress in the company’s turnaround strategy but noted that significant value creation would be better managed privately. The deal includes a 35-day go-shop period, though analysts doubt a competing bid will emerge. — news from Reuters
