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Takeaways
- Walgreens agreed on a $10 billion deal that will see Sycamore Partners take the company private.
- The drugstore chain's stock popped in extended trading Thursday following the news.
- The deal comes after a tough stretch for Walgreens, announcing a plan last year to shutter some 1,200 "underperforming" stores.
Walgreens Boots Alliance, or WBA, announced on Thursday that it has agreed to be privatized in a $10 Billion deal with private equity company Sycamore Partners.
Sycamore said it would pay $11.45 per share for the troubled drugstore chain, about 8% above Thursday's closing price. The stock increased by more than 5% during extended trading to $11.19.
The company also said that investors could receive up to $3 per share more in proceeds if Walgreens sells its primary care business, which could bring the value of this deal to almost $24 billion. The transaction is expected close in the fourth quarter 2025.
Walgreens shares rose in the first half of this year after reports that talks were underway to take the drugstore group private. The deal comes at a time when Walgreens has been struggling. In October, Walgreens announced plans to close 1,200 stores that were “underperforming”. This plan will be implemented over the next 3 years. The stock of Walgreens had lost half its value over the last year as of Thursday’s closing.
