Walgreens confirms $10B sale to PE, as part of $24B transaction

Editor's Note: (3/11/25) An earlier version of this article described the transaction as a cash deal. This was an error. An update on this developing the story can be found here.

Walgreens has entered into a definitive agreement to be purchased by Sycamore Partners, a private equity firm that specializes in retail businesses. The struggling pharmacy chain confirmed the news on Thursday.

In a statement, Walgreens said it will be sold for $11.45 a share, totaling roughly $10 billion. At that point, the company will be taken private and placed under the umbrella of Sycamore.

The deal includes a potential future sale of VillageMD, the chain of primary care clinics owned by Walgreens. Once sold, shareholders may earn an extra $3.00 in cash, on top of the $11.45.

Sycamore will also take on all outstanding debts, meaning the total value of the transaction is estimated at $23.7 billion, according to the announcement. 

In a twist, the deal includes a 35-day “go-shop” period before being finalized, during which time other potential buyers may bid to own Walgreens. However, the company said, “there can be no assurance that this process will result in a superior proposal.”

The transaction was teased earlier this week in a report from the Wall Street Journal. According to sources, Sycamore intends to continue operating Walgreens’ core U.S. retail pharmacy business.

Sales lagging, lawsuits pending

Walgreens has struggled financially in recent years, with the company announcing in June 2024 that it intended to close a “significant” number of its remaining 8,700 stores, as 25% of them were not profitable.

Its pharmacy business has also run afoul of regulators on multiple occasions. In January, the U.S. Department of Justice (DOJ) announced a lawsuit against the company for allegedly filling “millions” of prescriptions illegally. In September 2024, the DOJ reached a settlement in a separate claim against Walgreens, resolving fraud allegations to the tune of $107 million.

Walgreens also settled with the City of Baltimore, which alleged its pharmacies contributed to the metro’s opioid crisis. That case ended with an estimated $80 million payout.

The removal of its stock from public stock exchanges represents a historical change. Walgreens has been around for more than 120 years, with shares available on open markets since 1927.

Its stock currently sits at $11.39 a share, up 6% in the last five days. Walgreens is set to report its Q2 financial results to investors on April 8.