A takeover by Sycamore Partners would provide the drugstore chain with the freedom to implement operational changes without being influenced by the opinions of Wall Street.
Walgreens Boots Alliance revealed its decision to be purchased by the private equity company Sycamore Partners as part of its efforts to revitalize the struggling business that has been facing financial losses for a sustained period.
According to the announcement made by Walgreens, Sycamore Partners will acquire the company for $11.45 per share, resulting in an equity value close to $10 billion. Additionally, shareholders might be eligible to receive an extra $3 per share based on specific criteria being met.
A buyout to take the drugstore chain private would give it more flexibility to make changes to improve its business without worrying about Wall Street’s reaction. The company has already been making some big changes as it seeks to turn around its business. Walgreens has been a public company since 1927.
Walgreens, founded in 1901, has been dealing with thin prescription reimbursement, rising costs, persistent theft and inflation-sensitive shoppers who are looking for bargains elsewhere. Walgreens is in the early stages of a plan to close 1,200 of its roughly 8,500 U.S. locations.
The Deerfield, Illinois, company had already shed about a thousand U.S. stores since it grew to nearly 9,500 after buying some Rite Aid locations in 2018.
