Struggling drugstore chain Walgreens has reached a deal to go private, with private equity firm Sycamore Partners agreeing to acquire the company for an equity value of around $10 billion. The agreement involves Sycamore paying $11.45 per share in cash for Walgreens, which represents an 8% premium over the company’s stock price on Thursday. In addition, Walgreens’ shareholders could receive up to $3 more per share from the future sale of the company’s primary-care businesses, including Village Medical, Summit Health, and CityMD.
The total value of the transaction, including debt and future payouts, could reach $23.7 billion. Walgreens and Sycamore anticipate finalizing the deal by the fourth quarter of this year. Walgreens’ stock surged more than 5% in after-hours trading before being halted following the announcement.
This deal marks the end of Walgreens’ long history as a publicly traded company, which began in 1927. Despite a 15% increase in its stock price in 2025, Walgreens had faced significant financial difficulties in recent years. The company’s stock had fallen 48% over the past year and had dropped 70% over the last three years. Tim Wentworth, the CEO of Walgreens who took the role in 2023, explained that while the company was making progress with its turnaround strategy, it would be better managed as a private entity. He highlighted that Sycamore’s expertise in retail turnarounds would be valuable for Walgreens’ future.
Sycamore Partners’ managing director, Stefan Kaluzny, expressed confidence in Walgreens’ “pharmacy-led model” and its essential role in improving health outcomes for communities. Walgreens will retain its headquarters in Chicago and maintain its workforce of over 310,000 employees, with 12,500 retail locations across the U.S., Europe, and Latin America.
Once a highly valued company with a market cap of over $100 billion in 2015, Walgreens has seen its market value decline to less than $8 billion in late 2024. This decline was driven by competition from rivals like CVS, grocery chains, big-box retailers, and Amazon, as well as challenges such as the post-COVID transition, pharmacy reimbursement issues, and struggles in its healthcare expansion. Walgreens has also announced plans to close around 1,200 stores in the next three years, including 500 in fiscal 2025.
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