The Walgreens logo was on display on October 15, 2024 at a Walgreens store in San Rafael, California.
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Struggling pharmacy chain Walgreens Need private.
The company said on Thursday A deal was concluded Together with private equity firm Sycamore partners, it valued its stock at about $10 billion.
Sycamore will pay Walgreens $11.45 in cash per share. In the future, shareholders can also get up to $3 in sales of Walgreens’ primary care operations, including Rural Health, Summit Health and CityMD. Walgreens said the total value of the deal will be as high as $23.7 billion when it comes down, including debt and possible spending.
Walgreens and Sycamore are expected to end the Paijing agreement in the fourth quarter of this year. Walgreens shares jumped more than 5% in after-hours trading Thursday before stopping.
The historic deal ended the turmoil of Walgreens as a publicly traded company that began in 1927. As of Thursday morning, the company’s stock rose more than 15% in 2025, but stocks remained down more than 48% last year and fell 70% over the past three years.
Walgreens CEO Tim Wentworth holds the role in 2023. “Sycamore will provide us with the expertise and experience of our partners and have a strong track record of successful retail turnover.
Stefan Kaluzny, managing director of Sycamore, said in a press release that the deal reflects the company’s confidence in Walgreens’ “pharmacy-led model and fundamental role in driving better outcomes for patients, clients and communities.”
Walgreens will maintain its headquarters in Chicago. The company currently has over 310,000 employees and 12,500 retail pharmacy locations worldwide in the United States, Europe and Latin America. Walgreens still plans to release its second-quarter earnings on April 8.
Walgreens’ market value peaked at over $100 billion in 2015, making it one of the most outstanding retail companies in the United States.
However, thanks to its major competitors’ resumes, grocery chains, large retailers and Amazonand many challenges. Walgreens was squeezed out of the common pandemic by Walgreens, with pharmacies reimbursement headwinds, softer consumer spending, and troubled health care.
Both Walgreens and resumes have expanded from years of store expansion to closing hundreds of retail pharmacies across the United States to make profits. But unlike CVS, which diversifies its business model by providing insurance and pharmacy benefits, Walgreens drastically doubles its now-market retail pharmacy business.
Walgreens said in October that it plans Close approximately 1,200 pharmacies Over the next three years, fiscal 2025 alone will include fiscal 500. Walgreens has about 8,700 locations in the United States, one quarter of which is said to be unprofitable. The company has also expanded its push to enter primary care by cutting its stake in provider Villagemd.
Walgreens hired health care veteran Tim Wentworth as new CEO by the end of 2023 to help restore its foothold.
The company was reportedly seen as a potential private equity target in the past.
In 2019, private equity firm KKR roughly made $70 billion acquisition The Financial Times and Bloomberg Report at the time provided a quote to Walgreens.
