Walgreens Boots Alliance is reportedly in the final stages of a deal to be acquired by private-equity firm Sycamore Partners in a transaction valued at around $10 billion, according to The Wall Street Journal.
If finalized, the sale could lead to major changes for Walgreens, including the potential sale or restructuring of its divisions, such as UK health and beauty chain Boots.
Sycamore Partners is expected to focus on retaining the core US retail operations while potentially divesting or taking the other segments public.
The 120-year-old pharmacy retailer, which has been listed since 1927, has faced financial challenges in recent years, struggling with low prescription reimbursement rates and the growing competition from online retail.
Under the leadership of CEO Tom Wentworth, who took over in October 2023 after Rosalind Brewer’s sudden departure, the company has focused on improving profitability and reducing costs.
As part of its ongoing restructuring efforts, Walgreens announced in October 2024 plans to close 1,200 stores in the US by the end of fiscal 2027, reducing its total locations to approximately 7,500.
The company also revealed plans to shut down 60 underperforming VillageMD clinics and exit five markets, all part of a broader $1 billion cost-saving initiative.
Sycamore Partners, which has a history of investing in retail and consumer brands, most recently acquired quick-service chain Playa Bowls in September 2024.
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