Walgreens Sold To Private Equity Firm In Up To $23.7B Deal

DEERFIELD, IL — As it nears 100 years as a publicly traded company, Walgreens Boots Alliance, the parent company of pharmacy giant Walgreens, has announced its going private. Sycamore Partners, a private equity firm out of New York, has entered into a definitive agreement to buy the Deerfield-based company.

According to WBA, the total value of the transaction represents up to $23.7 billion. The potential for a deal between the two sides was first announced in December. Walgreens will remain in the Chicago area and continue to operate under Walgreens, Boots and its portfolio of consumer brands.

Walgreens said shareholders will get of $11.45 per share in cash, an equity value just under $10 billion, the Associated Press reported.

"While we are making progress against our ambitious turnaround strategy, meaningful value creation will take time, focus and change that is better managed as a private company," Tim Wentworth, chief executive officer of WBA, said Thursday. "Sycamore will provide us with the expertise and experience of a partner with a strong track record of successful retail turnarounds."

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The deal follows several years of Walgreens making cost-cutting measures across the board — including layoffs, closing of stores and distribution centers. WBA has seen its market value shrink from over $100 billion to around $7.5 billion in the last decade.

WBA, headquartered at 108 Wilmot Road, oversees approximately 8,600 Walgreens and Duane Reade stores in the U.S.

Sycamore Partners specializes in retail and consumer investments. Its holdings include Staples, Hot Topic and Premium Apparel (Ann Taylor, Lane Bryant).