The Walgreens logo appears at a Walgreens store on October 15, 2024 in San Rafael, California.
Justin Sullivan | Getty Images
Fighting the chain of pharmacies knight is going private.
The company on Thursday said she made a deal with the private capital’s private capital firm that will remove it from the public market for a $ 10 billion net value.
Sycamore will pay $ 11.45 for cash share share for Walgreens, representing a premium approximately 8% of the shares closing price on Thursday. Shareholders can also get up to $ 3 more per share in the future share of Walgreens’ primary care businesses, including Village Medical, Summit Health and Citymd.
Walgreens said the total value of the transaction would be up to $ 23.7 billion when you include debt and possible payments below the line.
Walgreens and Sycamore are waiting to close the receipt agreement in the fourth quarter of this year. Walgreens’ shares increased more than 5% in trading after time Thursday before stopping.
The historic deal concludes Walgreens’ shocked direction as a public company, which began in 1927. Since Thursday morning, company shares increased more than 15% for 2025, but shares were still more than 48% for the last year and had fallen 70% for the last three years.
“As we are progressing against our ambitious turning strategy, the creation of significant values will take time, concentration and change that is best managed as a private company,” said the Walgreens Tim Wentworth, which went to the role in 2023, in a Thursday omission. “Sycamore will provide us with the expertise and experience of a partner with a strong record of successful retail curves.
Stefan Kaluzny, the managing director of Sycamore, said the transaction reflects the firm’s confidence in “Pharmacy -led model and the essential role of Walgreens in directing the best results for patients, clients and communities”.
Walgreens will store its headquarters in Agoikago. The company currently has more than 310,000 employees globally and 12,500 retail countries throughout the US, Europe and Latin America, according to the release. Walgreens still plans to issue its second quarter income on April 8.
The Walgreens market value reached a peak of more than $ 100 billion in 2015 after investors gained confidence in its healthcare and expansion business plans, making it one of the most prominent US retail companies.
But the company’s market lid fell to below $ 8 billion in late 2024 due to competition from its main CVs, food chains, retailers of the big box and Amazonalong with a host of challenges. Walgreens is squeezed by transition outside Covid Pandemia, Pharmacy Refunds, Consumer More Expenditures and A Terrol Pushes in Health Care.
Both Walgreens and CVs have been run by years of shop expansion to close hundreds of retail countries across the US to increase profits. But unlike CVS, which has diversified its business model by providing insurance and pharmacy benefits, Walgreens mainly doubled in its retail pharmacy business now.
In October, Walgreens said it plans to close about 1,200 of its pharmacies over the next three years, including 500 in 2025 fiscal. Walgreens has about 8,700 seats in the US, a quarter of which says they are non -protofit. The company has also traversed it in primary care by cutting its shares in the Villagem provider.
Walgreens foiled the veteran of my health care industry as its new CEO at the end of 2023 to help recover its base.
The company is said to have been seen as a possible target of private capital in the past.
In 2019, the KKR Private Capital Firm made a purchase offer approximately $ 70 billion for Walgreens, reported the Financial Times and Bloomberg at the time.