Boots owner Walgreens Boots Alliance has agreed to a $10bn takeover offer from private equity firm Sycamore Partners, bringing the pharmacy giant’s time as a public company to an end.
Sycamore will pay $11.45 a share for the group, which represented a premium of almost 30% to the stock’s price when talks were first reported last year, and values Walgreens at $10bn.
The deal, which is expected to complete by the end of the year, creates doubt over the future of the UK Boots chain. It is expected that Sycamore will either sell or spin off Boots at some point in 2026.
“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,” said Stefan Kaluzny, MD of Sycamore Partners.
“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.”
Walgreens Boots Alliance CEO Tim Wentworth added: “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. Sycamore will provide us with the expertise and experience of a partner with a strong track record of successful retail turnarounds.”
Walgreens executive chairman Stefano Pessina will retain “a significant equity investment” in the businesses, according to the deal statement.
Pessina created the Walgreens Boots Alliance group through a merger of US-based Walgreens and Europe’s Alliance Boots in 2024.
However, the company has struggled in recent years, hit by weaker demand in the aftermath of the pandemic.
It’s market value peaked at $100bn in 2024 and had sunk to around $9bn before the Sycamore talks started. In 2019, the group turned down an offer from PE firm KKR that valued the business at more than $70bn.
The deal could be worth up to $23.7bn, with potential for shareholders to receive a further $3 a share from the future sale of Walgreen’s VillageMD primary care business.
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