Walgreens Moves Forward with Plans to Revert Back to Private Ownership Status
Walgreens Boots Alliance Inc., the global pharmacy-led retail and healthcare company, is on the brink of a significant transformation as its acquisition by Sycamore Partners has been overwhelmingly approved by its shareholders.
At a special meeting held in July 2025, about 96% of votes cast, including approximately 95% from unaffiliated shareholders, were in favour of the deal. This strong support marks a confident step forward for the transaction, which is expected to close in the third or fourth quarter of 2025, subject to regulatory approvals and other closing conditions.
The deal, valued at around $10 billion, will provide Walgreens shareholders with $11.45 per share in cash upon closing. This move to private ownership is expected to offer Walgreens more flexibility to focus on its ambitious turnaround and restructuring efforts without the pressures of the public markets.
Walgreens' CEO, Tim Wentworth, has highlighted that partnering with Sycamore Partners will help accelerate the turnaround, enhance the experience for patients, customers, and employees, and strengthen its leadership position in pharmacy, retail, and health services. Sycamore Partners, known for their retail turnaround expertise, have committed to maintaining Walgreens’ trusted brands and pharmacy-led business model.
Despite reporting a net loss of $175 million in its fiscal third quarter ended May 31, compared to net income in the same quarter last year, Walgreens Boots Alliance remains optimistic about the acquisition's potential to improve its financial performance. The company operates approximately 12,500 pharmacy locations across the U.S., Europe, and Latin America, and employs approximately 312,000 people, with a presence in eight countries.
One of the strategic options Walgreens plans to explore is improving the financial performance of its VillageMD primary care unit, which may include a potential sale in the future. Walgreens' common stock will no longer be listed on the Nasdaq Stock Market upon closing of the transaction.
The acquisition marks Sycamore’s largest retail investment and underscores confidence in Walgreens’ crucial role in healthcare provision across the U.S. Walgreens' consumer brands include Walgreens, Boots (U.K. market leader), Duane Reade, No7 Beauty Company, and Benavides.
In a recent settlement, Walgreens agreed to pay up to $350 million to the U.S. Department of Justice over the issuing of millions of prescriptions for opioids and other controlled substances. This acquisition comes as Walgreens embarks on a journey towards a more focused and accelerated transformation under private ownership.
Investing in Walgreens stock value is about to change with the approaching acquisition by Sycamore Partners, a move which is anticipated to boost the pharmacy-led retail and healthcare company's financial performance. This transaction, once approved by regulatory bodies, is expected to offer Walgreens the liberty to focus on its business transformation without the pressures of public markets, while Sycamore Partners, renowned for their retail turnaround expertise, aim to maintain Walgreens' trusted brands and pharmacy-led business model.
