Sycamore Partners takes Walgreens Boots Alliance private in $10bn deal

Walgreens Boots Alliance (WBA) has entered into a $10 billion agreement with private equity firm Sycamore Partners, marking a transition to private ownership and ending nearly a century of public trading. This decision comes as WBA has faced significant financial challenges, including a staggering 90% drop in market capitalization since 2015 and rising debt levels, now totaling around $30 billion. Sycamore will pay $11.45 per share, an 8% premium over WBA’s recent trading price, with the potential for additional cash based on future monetization of WBA's VillageMD business. The deal raises uncertainties regarding the future of Boots, which operates about 1,900 stores in the UK and has been a key asset for WBA. Tim Wentworth, WBA's CEO, expressed confidence that being a private entity will better support the company's turnaround strategy. The transaction is expected to finalize by the end of the year, but Walgreens still has 35 days to consider any competing bids.