Walgreens Agrees to $23.7 Billion Buyout by Sycamore Partners

Sycamore Partners, a private equity firm known for its focus on the retail and consumer sectors, has entered into a merger agreement to acquire Walgreens Boots Alliance for approximately $23.7 billion, marking a significant leveraged buyout in recent years. The transaction is slated to close by the end of 2025, transitioning Walgreens from a public to a private company, with a goal to enhance the company's agility in adapting to modern healthcare retail dynamics. Walgreens has faced challenges from e-commerce giants, leading to this strategic move to refocus its business operations. Shareholders will receive a cash payout of $11.45 per share, and potentially an additional $3.00 per share contingent on future divestments of Walgreens’ interests in VillageMD. The merger includes a go-shop provision, allowing Walgreens to seek alternative offers within a set period, although board obligations are limited regarding disclosures during this timeframe. Termination fees are structured within the merger agreement to address potential withdrawal scenarios, with Sycamore securing financing commitments to back the acquisition.