Sycamore Partners is finalizing a deal to acquire Walgreens Boots Alliance in a transaction valued at around $10bn, according to sources familiar with the matter. 

The acquisition, which could be announced as soon as this week, would take the struggling pharmacy giant private.

The Wall Street Journal reported that Sycamore’s offer ranges between $11.30 and $11.40 per share in cash. Walgreens shares surged as much as 8.2% following the news, closing at $10.84—up 5% for the day.

A takeover by Sycamore could lead to a significant restructuring of Walgreens, potentially involving the breakup of the company’s various divisions. Walgreens’ portfolio includes UK pharmacy chain Boots, US healthcare provider VillageMD, drugstore chain Duane Reade, and specialty pharmacy group Shields Health Solutions. Analysts have long suggested that the company’s complex business mix would require a breakup for any successful take-private transaction.

Stefano Pessina, Walgreens’ chairman and a key architect of its 2014 merger with Alliance Boots, is expected to roll over his stake as part of the deal. While discussions are advanced, sources caution that delays or last-minute hurdles could still emerge.

Sycamore, known for executing complex investments in struggling retailers, may explore debt refinancing strategies to restructure Walgreens’ financial obligations. One possible approach could involve linking debt to specific business units rather than the entire company.

This isn’t the first time Walgreens has considered going private. In 2019, KKR & Co. explored a leveraged buyout of the company, but the deal ultimately collapsed.

For Sycamore, this acquisition represents another high-profile retail deal, underscoring private equity’s continued appetite for complex, large-scale transactions in the healthcare and consumer sectors.