Boots owner sold to Sycamore Partners in $23.7bn deal

Walgreens Boots Alliance has announced that it has been acquired by American private equity firm Sycamore Partners in a deal worth up to $23.7bn (£18.3bn).

The transaction is expected to close in the fourth quarter calendar year 2025, subject to customary closing conditions, including approval by WBA shareholders and the receipt of required regulatory approvals.

Under the agreement the company will continue to operate under Walgreens, Boots and its trusted portfolio of consumer brands.

WBA has revealed that the deal is not subject to a financing condition and Sycamore has received fully committed financing for the transaction.

Following the deal, WBA is currently evaluating a variety of options with respect to its significant debt and equity interests in the Divested Assets.

The Divested Assets Committee intends to consider all paths available to maximize the value of these businesses, including actions to “significantly enhance operational performance and strengthen the balance sheet of the businesses”.

Upon completion of the transaction, WBA’s common stock will no longer be listed on the Nasdaq Stock Market, and WBA will become a private company.

WBA shareholders will receive total consideration consisting of $11.45 (£8.86) per share in cash at closing of the Sycamore transaction and one non-transferable right to receive up to $3.00 (£2.32) in cash per WBA share.

Tim Wentworth, WBA CEO, said: “Throughout our history, Walgreens Boots Alliance has played a critical role in the retail healthcare ecosystem. We are focused on making healthcare delivery more effective, convenient and affordable as we navigate the challenges of a rapidly evolving pharmacy industry and an increasingly complex and competitive retail landscape.

“The WBA Board considered all these factors in evaluating this transaction, and we believe this agreement provides shareholders premium cash value, with the ability to benefit from additional value creation going forward from monetization of the VillageMD businesses.”

Stefan Kaluzny, managing director of Sycamore Partners, added: “For nearly 125 years, Walgreens, and for 175 years, Boots, along with their portfolio of trusted brands, have been integral to the lives of patients and customers.

“Sycamore has deep respect for WBA’s talented and dedicated team members, and we are committed to stewarding the Company’s iconic brands. This transaction reflects our confidence in WBA’s pharmacy-led model and essential role in driving better outcomes for patients, customers and communities.”