The Blubber

Walgreens to Go Private in $10 Billion Deal with Sycamore Partners

On Thursday, Walgreens announced it has reached an agreement with private equity firm Sycamore Partners to take the company off the public market, with an equity value of approximately $10 billion.

Sycamore will acquire Walgreens at $11.45 per share in cash, and shareholders may receive up to $3 additional per share from future sales of Walgreens’ primary-care businesses, including Village Medical, Summit Health, and CityMD. The total transaction value could reach $23.7 billion, which includes debt and potential future payouts.

Both companies expect to complete the take-private deal by the fourth quarter of this year. After the announcement, Walgreens' shares rose more than 5% in after-hours trading before being halted.

This historic transaction ends Walgreens’ long history as a public company, which began in 1927. While the company’s stock had risen more than 15% in 2025, it was still down over 48% for the previous year and had fallen 70% in the past three years.

“While we are making progress against our ambitious turnaround strategy, creating meaningful value will take time, focus, and changes that are better managed as a private company,” said Walgreens CEO Tim Wentworth, who took the role in 2023. “Sycamore will bring us the expertise and experience of a partner with a strong track record in retail turnarounds.”

Stefan Kaluzny, Sycamore’s managing director, stated that the deal reflects the firm’s confidence in Walgreens' pharmacy-led model and its essential role in delivering better outcomes for patients, customers, and communities.

Walgreens will maintain its headquarters in Chicago. The company employs more than 310,000 people globally and operates 12,500 retail pharmacy locations across the U.S., Europe, and Latin America.

Despite the take-private deal, Walgreens still plans to release its second-quarter earnings on April 8.

At its peak in 2015, Walgreens had a market value of over $100 billion as investors were optimistic about its health-care business and expansion. However, by late 2024, its market cap had fallen to below $8 billion, mainly due to competition from CVS, grocery chains, big-box retailers, and Amazon. Additionally, the company faced several challenges, including the post-Covid transition, pharmacy reimbursement issues, slower consumer spending, and a troubled health-care expansion.

Both Walgreens and CVS have shifted focus from store expansion to closing hundreds of retail pharmacy locations across the U.S. to protect profits. However, unlike CVS, which has diversified into insurance and pharmacy benefits, Walgreens has largely stuck to its declining retail pharmacy business.