Walgreens Nears $10-12B Take-Private Deal with Sycamore

Walgreens Boots Alliance is nearing a significant take-private deal with Sycamore Partners, valued at approximately $10 billion to $12 billion, which would be one of the largest leveraged buyouts since the financial crisis. The agreement, anticipated to close by Thursday, might include contingent value rights that could increase its worth if certain conditions are met. Sycamore Partners is expected to retain the core U.S. retail operations while potentially selling off or taking public other units. Major banks like Citi, Goldman Sachs, and JPMorgan are preparing financing packages for the acquisition, leveraging a mix of loans, bonds, and asset-based lending. Walgreens has been facing challenges, including store closures and a suspension of its dividend, leading to a 50% drop in share value over the past year. Walgreens shares have recently seen a boost in anticipation of the deal, reflecting a 10% gain this year.