The US pharmaceutical chain Boots, owned by Walgreens Boots Alliance, is going to be taken private in a deal worth $10 billion, signaling the end of almost a century of public trading for the company. The acquisition is being made by the US private equity company Sycamore Partners, as Walgreens has struggled financially in the age of online shopping, with its market value diving by 90% since 2015.

Sycamore’s $11.45-per-share offer gives the company a total equity value of around $10 billion. Furthermore, this deal allows for Walgreens’ investors to potentially receive an additional $3 per share from the sale of VillageMD, which is part of Walgreens’ primary care business, putting the total deal’s value at $23.7 billion when including the company’s debt.

Boots, which operates over 1,800 stores across the UK and employs over 50,000 people, faces increased uncertainty as discussions over its future have been ongoing for almost three years. Retail analyst Nick Bubb suggests that Boots could consider an IPO next year, but this will be after Sycamore completes the acquisition of Walgreens in the latter half of the year.

Walgreens initially bought into Boots in 2012 and had a complete buyout two years later. During the pandemic, Boots cut 4,000 jobs, approximately 7% of its workforce, and closed nearly 50 of its optical branches. In 2023, the chain closed another 300 shops as part of its store estate evolution process.

This deal is going to close Walgreens’ 98-year history as a public company, though there is still a 35-day period for rival bids to be considered. It will end the 9-year tenure of Stefano Pessina, Walgreens’ executive chair and largest shareholder, who consolidated Walgreens with Alliance Boots in 2014 but will retain a minority stake in the business post-acquisition.

Walgreens’ market value plummeted over the decade as the rise of e-commerce significantly impacted its brick-and-mortar operations. In the words of Walgreens’ CEO Tim Wentworth, the company is dealing with the “complexities of the fast-evolving pharmacy sector and an increasingly competitive retail landscape.” Wentworth admits that meaningful value creation will require time but believes that being private will facilitate better management and focus.

Source: https://www.theguardian.com/business/2025/mar/07/us-owner-of-uk-pharmacy-chain-boots-to-be-taken-private-in-10bn-deal