Walgreens Boots Alliance says it has agreed to be acquired by the private equity firm Sycamore Partners as the struggling retailer looks to turn itself around after years of losing money
Walgreens Boots Alliance has agreed to be acquired by private equity firm Sycamore Partners in a deal valued at nearly $10 billion in equity, allowing the company to operate more flexibly. The acquisition follows years of financial struggles, including thin prescription reimbursement, rising costs, theft, and shifting consumer behavior. Walgreens plans to close 1,200 stores, a reversal of a previous expansion strategy, and has seen its shares drop significantly. The deal, which includes debt, totals just under $24 billion, representing a 30% premium over December share prices. CEO Tim Wentworth confirmed the sale process earlier this year. Analysts highlight the need for improved cash flow. This move follows competitor Rite Aid's emergence as a private company after bankruptcy.
