Walgreens Going Private In Deal Worth More Than $24 Billion

Walgreens Boots Alliance (WBA) is being taken private in a deal valued at up to $23.7 billion, following a difficult period on the public markets in which its market capitalization plummeted and more than 10% of its locations closed, Jordan Valinsky and Ramishah Maruf reported for CNN.

WBA shares have lost nearly 80% of their value over the past five years. I Photo: Walgreens Facebook

This marks the end of nearly a century as a publicly traded company. After opening its 100th store in Chicago, Walgreens went public the following year in 1927.

Private equity firm Sycamore Partners has agreed to pay $11.45 per share in cash, according to a statement from Walgreens. Including debt and other potential future payouts, the company stated that the full value of the deal could reach as high as $23.7 billion.

WBA shares have lost nearly 80% of their value over the past five years, though they have rebounded somewhat in recent months amid reports of privatization talks.

Sycamore Partners, which specializes in consumer and retail services, said Walgreens would continue operating under its existing portfolio of brands from its headquarters in the Chicago area.

“While we are making progress against our ambitious turnaround strategy, meaningful value creation will take time, focus, and changes that are better managed as a private company,” WBA CEO Tim Wentworth said in a statement.