Pharmacy Chain Walgreens Nears $10 Billion Deal To Go Private

Struggling U.S. pharmacy chain Walgreens Boots Alliance (WBA) is reportedly close to a
deal that will see it bought by private equity firm Sycamore for $10 billion U.S. and taken private.

Media reports say Sycamore is considering paying as much as $11.40 U.S. a share in cash for Walgreens and that a deal could be announced within a week.

If Sycamore ends up acquiring the retail pharmacy chain, it is expected to maintain Walgreens U.S. business but sell the remaining parts of the company.

The take private deal comes as Walgreens continues to struggle with dwindling foot traffic and sales at its stores following the Covid-19 pandemic.

The company did get a boost during the pandemic as people visited its locations to get Covid-19 vaccinations. But those gains have since faded, leading to declining sales and profits.

Walgreens’ stock has declined 50% over the last 12 months and is down 80% in the past five years.

At $10.26 U.S. per share, Walgreens currently has a market capitalization of $8.87 billion U.S., down from a market value of greater than $100 billion U.S. a decade ago.

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