Boots owner Walgreens nears $10bn takeover deal

Walgreens Boots Alliance, the owner of Boots, is reportedly nearing a deal with private-equity firm Sycamore Partners that would take the struggling drugstore chain off the public market for around $10bn (£7.8bn).According to the Wall Street Journal, sources familiar with the matter said both sides were aiming to complete a deal as soon as Thursday (6 March).

Sycamore could reportedly pay between $11.30 (£9.42) a share and $11.40 (£9.51) a share in cash. The deal could also include contingent value rights that would increase the value if certain targets are later reached.

If Sycamore completes a deal for the whole company, it is expected to maintain the core US retail business and sell off or take public other parts of the company, sources told the WSJ.

In December, reports emerged that the takeover bid for Walgreens could lead to an auction of Boots.

Italian dealmaker Stefano Pessina, who has led a string of deals involving Boots, is thought to be central to any carve-out of the company.

One source said that Pessina, who holds roughly a 17% stake in WBA, may end up as the principal owner of Boots depending on how the deal with Sycamore was structured.

Reports of a potential deal to take Walgreens off the public market come after its shares have been on a downward fall for nearly a decade. 

A take-private deal would be a “landmark moment” for Walgreens, whose shares have been public since 1927. 

Walgreens’s market value reached more than $100bn (£77.8bn) in 2015 but shrank to under $8bn (£6.2bn) in 2024. This was reportedly caused by its decision to double down on its retail pharmacy while rival CVS Health diversified into insurance and pharmacy benefits.

Walgreens acquired a 45% stake in Alliance Boots in 2012, completing its buyout of the business two years later.