In this photo is a business sign that depends on the entrance to a walgreens pharmacy and store in … [+]
The Walgreen Boots Alliance will be held privately in a receipt from investment firm Sycamore Partners for more than $ 10 billion, companies announced on Thursday.
The deal, which has been rumored for months, calls for Walgreens shareholders to receive $ 11.45 for cash share in closing the Sycamore purchase and “a non-transferable right to receive up to $ 3 in cash for WBA shares” from the future WBA partisan for WBA debt interest in Villagemd, which include Summit and Summiti village, Citymd Businestes, “the companies said.”
The Sycamore Agreement to pay $ 11.45 per share is $ 29% above where the stock price was trading in December and representing a net value of about $ 10 billion, the companies confirmed.
“Leveraging (Walgreens Alliance Health Care Expertise and Sycamore Settlement in Retail and Customers, the WBA will be better positioned to become the first choice for pharmacy, retail and health services,” said on Thursday. Portfolio of consumer brands.
Walgreens’ stock has fallen in recent years due to a catastrophic participation of clinics attached to stores. This has led the company to close hundreds of stores to reduce the debt of stem financial losses.
Under former executive chief Roz Brewer, Walgreens spent billions of dollars in investing and operating the staff of Villagem staff clinic.
Walgreens invested more than $ 6 billion in Villagemd under Brewer to take a controlling share, but the company has already dramatically scaled to expand the practices and clinics of doctors that the company opened attached to Walgreens. In 2020, Walgreens said he planned to open 500 to 700 “Medical At Walgreens village” doctors -run clinics run by more than 30 US markets over five years, with “the goal of building hundreds more afterwards”.
But the Director General of Walgreens Tim Wentworth, who replaced Brewer in October 2023, said a year ago that Walgreens and partner Villagemd have slowed the openings of the number clinics partially because operators were unable to fill their “patient panels”, which are a certain number of individual patients under the care of a specific provider.
Meanwhile, Walgreens, which has closed shops and cost reduction, reported a net loss of $ 265 million, or 31 cents a action in the first fiscal quarter that ended on November 30 last year. This is compared to a year earlier a year earlier of $ 67 million or 8 cents per share.
It is unclear if Walgreens will eventually throw business under new ownership. On Thursday afternoon, Wentworth said the company is focused on “making the most effective, convenient and affordable health care while navigating the challenges of a rapidly developing pharmacy industry and an increasingly complicated and competitive retail landscape.”
News of Walgreens’ sale comes after CVS Health Rival has remained committed to keeping all of its businesses, including its retail pharmacies and the growing operation of the OAK Street High Health Center. The CVS also owns the third largest health insurance company in AETNA and one of the largest pharmacy benefit companies in the country (PBM) in Caremark. Possessing a health insurer and PBM allows them CVS companies to buy services from its provider’s operations with discounts for health plan registrations, as well as employer and government customers.
Wentworth indicated that the company would falsify a prior to a turning strategy.
“While we are progressing against our ambitious turning strategy, creating significant values will take time, concentration and change that is best managed as a private company,” Wentworth added. “Sycamore will provide us with the expertise and experience of a partner with a strong record of successful retail curves. The WBA Board considered all these factors in assessing this transaction, and we believe this agreement provides shareholders with the value of money money, with the ability to take advantage of the additional value of money.”
For her part, leaders in Sycamore Partners said they were committed to Walgreens and its brands, as well as the executive team currently running the company.
“For nearly 125 years, Walgreens, and for 175 years, boots, along with their trusted brand portfolio, have been integral for the lives of patients and clients. “This transaction reflects our confidence in the model led by the WBA pharmacy and the essential role in directing the best results for patients, clients and communities.”
The transaction is expected to close in the fourth quarter of this year, pending approval by Walgreens’ regulators and shareholders. The closure will also end Walgreens as a publicly traded company and therefore no longer ranked in the Nasdaq stock market.