Turnaround specialist Sycamore Partners has agreed to take 125-year-old US drugstore giant Walgreens Boots Alliance private in a $23.7 billion deal.
It follows a period of financial and operational restructuring at the Nasdaq-listed company, which also owns the 175-year-old Boots drugstore chain in the UK. CEO Tim Wentworth said in a statement that taking the group private will help it better navigate a changing and increasingly competitive market.
Several PE firms have previously expressed interest in acquiring the Walgreen Boots Alliance’s UK-based Boots unit. In 2022, Apollo Global Management and Reliance Industries considered a £6 billion (about $7.7 billion) bid for the business, while Bain Capital and CVC Capital Partners also explored a joint offer. The group ultimately decided to retain its UK business.
This is not the first time the business has been in PE hands. KKR previously owned a 45% stake in Alliance Boots and exited its investment by selling its stake to Walgreens, leading to the formation of the Walgreens Boots Alliance.
Walgreens then purchased the remaining 55% in 2015 for £3.1 billion in cash and 144.3 million shares, valuing the deal at nearly $16 billion.
Under the terms of the deal, Walgreen Boot Alliance shareholders will receive $11.45 per share in cash at closing, reflecting a 29% premium over its Dec. 9 closing price.
Shareholders will also receive a non-transferable right to up to an additional $3 per share, contingent on the future monetization of Walgreen Boot Alliance’s stake in VillageMD and related assets.
Featured image by Justin Sullivan/Getty Images
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