Walgreens to Go Private in $10 Billion Deal with Sycamore Partners

Walgreens Boots Alliance is set to go private in a landmark $10 billion acquisition by Sycamore Partners. The deal, which values the company at $11.45 per share in cash, includes the potential for additional payouts linked to the sale of Walgreens’ primary-care businesses. If completed, this transaction would mark a significant shift for the embattled pharmacy chain, allowing it to restructure away from the scrutiny of public markets.

The decision to go private comes after years of financial struggles for Walgreens. Once valued at over $100 billion in 2015, the company’s market capitalization had fallen to below $8 billion by late 2024. Unlike its competitor CVS Health, which expanded into insurance and pharmacy benefits, Walgreens remained focused on its traditional retail pharmacy model, a strategy that ultimately failed to keep pace with industry changes. The company also attempted to diversify through investments in primary care, such as VillageMD, but these efforts did not deliver the expected turnaround.

In addition to financial setbacks, Walgreens has faced mounting operational challenges. The company announced plans to close 1,200 stores over the next three years, citing profitability concerns. As of 2024, only “one in four” Walgreens locations was considered profitable, underscoring the urgency for restructuring (Zilber, 2025). Moreover, Walgreens has dealt with legal issues, including a lawsuit from the Justice Department over its role in the opioid crisis.

Sycamore Partners, a private equity firm with experience in retail turnarounds, sees an opportunity to reshape Walgreens. “Sycamore will provide us with the expertise and experience of a partner with a strong track record of successful retail turnarounds,” said Walgreens CEO Tim Wentworth, emphasizing the potential benefits of the acquisition (Constantino, 2025). The firm is expected to retain Walgreens’ core U.S. retail pharmacy business while exploring options for other segments.

Despite its struggles, Walgreens remains a major player in the pharmacy sector, operating more than 8,700 locations in the U.S. and employing over 310,000 people globally. Sycamore’s managing director, Stefan Kaluzny, expressed confidence in Walgreens’ future, stating that the firm believes in the company’s “pharmacy-led model and essential role in driving better outcomes for patients, customers, and communities” (Constantino, 2025).

The acquisition is expected to close in the fourth quarter of 2025, pending regulatory approvals. If successful, it will be one of Sycamore’s largest transactions and could provide Walgreens with the stability and resources needed to regain its footing in an increasingly competitive healthcare and retail landscape.

Sources

Constantino, Annika Kim. "Walgreens to Go Private in Roughly $10 Billion Deal with Sycamore Partners." CNBC, 6 Mar. 2025, https://www.cnbc.com/2025/03/06/walgreens-to-go-private-in-10-billion-deal-with-sycamore-partners.html. 

Zilber, Ariel. "Walgreens on Verge of Being Sold to Private-Equity Firm for $10B: Report." New York Post, 4 Mar. 2025, https://nypost.com/2025/03/04/business/walgreens-about-to-be-sold-to-private-equity-firm-for-10b-report/.