Walgreens Boots Alliance (WBA) agreed to a $23.7bn deal with Sycamore Partners, marking the end of its nearly century-long run as a publicly traded company.

The transaction, which values Walgreens at a 30% premium to its pre-deal price, underscores the private equity firm’s confidence in revitalizing the pharmacy giant amid a challenging retail and healthcare landscape.

Sycamore, a recent attendee at the CEE Private Equity Conference in Warsaw, will pay $11.45 per share in cash, valuing Walgreens’ equity at approximately $10bn. Additionally, shareholders could receive up to $3 per share from the future sale of Walgreens’ primary care business, VillageMD, bringing the total deal value, including debt, to $23.7bn.

As part of the agreement, Walgreens Executive Chairman and largest shareholder, Stefano Pessina, will retain a significant minority stake. The company will continue operating under its existing brands, including Walgreens and Boots, and maintain its Chicago-area headquarters.

Walgreens, which generates $148bn in annual revenue across thousands of stores, has faced mounting pressures from shifting consumer habits, declining reimbursement rates, and intensifying competition. Its market capitalization has plummeted from over $100bn following its 2014 merger with Alliance Boots to under $10bn.

The take-private transaction, expected to close in Q4 2025, follows a trend of private equity firms capitalizing on undervalued retail and healthcare assets. Walgreens will have a 35-day “go-shop” period to solicit competing offers, though no rival bidders have emerged thus far.

With regulatory approvals still pending, Sycamore’s strategy is expected to involve restructuring Walgreens’ portfolio, potentially spinning off assets like UK pharmacy chain Boots. The move reflects private equity’s growing influence in the retail healthcare sector as firms seek to unlock value in struggling but strategically essential businesses.