Boots owner WBA agrees to 23.7 billion dollar buyout deal

Walgreens Boots Alliance (WBA), the parent company of British pharmaceutical chain Boots, has come to a definitive agreement to be acquired by a subsidiary associated with private equity firm Sycamore Partners. The deal, with a transaction valued at 23.7 billion dollars, will ultimately take WBA private, removing the company’s listing from the Nasdaq Stock Market.

The agreement was unanimously approved by WBA’s board of directors, however, its shareholders will also be called on to vote on the matter. Other customary closing conditions will also apply. If approved, WBA shareholders are to receive a total consideration of 11.45 dollars per share in cash at the closing of the transaction, expected to come in the fourth quarter of 2025.

With the deal, however, WBA has now entered into a 35-day ‘go-shop’ period, allowing for the company to receive, evaluate and enter into negotiations with parties that offer alternative proposals. WBA noted that there was no assurance that a superior proposal will be forthcoming, and it does not intend to disclose developments in this respect.

In a release, WBA’s chief executive officer, Tim Wentworth, said the agreement aligned with the company’s efforts to deliver “more effective, convenient and affordable” healthcare as “we navigate the challenges of a rapidly evolving pharmacy industry and an increasingly complex and competitive retail landscape”. It all comes as part of an ongoing turnaround strategy at WBA, ongoing since 2023 and introduced as a means to create value for customers and shareholders.

Sycamore to aid in WBA’s ongoing turnaround strategy

This had at first seemed to take shape in a potential sale of Boots, which had already undergone a retail overhaul and a shelved IPO plan, yet whose ownership proceedings had remained largely under wraps. Various media reports towards the end of 2024 had suggested that Sycamore was among the leading interested parties eyeing the beauty and healthcare giant.

Now, with WBA as a whole to possibly come under its wing, Sycamore, which has previously invested in brands like Ann Taylor, Loft and Express, can put to use its expertise in initiating turnaround strategies to help better position the firm in the retail and health market. WBA will continue to operate under Walgreens, Boots and its portfolio of consumer brands, while further retaining its Chicago headquarters.

Wentworth continued: “While we are making progress against our ambitious turnaround strategy, meaningful value creation will take time, focus and change that is better managed as a private company. Sycamore will provide us with the expertise and experience of a partner with a strong track record of successful retail turnarounds. The WBA Board considered all these factors in evaluating this transaction, and we believe this agreement provides shareholders premium cash value, with the ability to benefit from additional value creation going forward from monetisation of the VillageMD businesses.”