Walgreens Boots Alliance in acquisition agreement

The US owner of Boots, Walgreens Boots Alliance (WBA), has entered an agreement to be acquired by an entity affiliated with private equity firm, Sycamore Partners.

The firm specialises in retail, consumer, and distribution-related investments.

The total value of the transaction, which is expected to close in the fourth quarter of 2025 subject to customary closing conditions, represents up to $23.7 billion (£18.23 billion approximately).

On completion of the transaction, WBA will become a private company, with its stock no longer listed on the stock market.

Announcing the deal, the companies suggested that leveraging the healthcare experience of WBA and Sycamore’s background in retail and consumer services, “WBA will be better positioned to become the first choice for pharmacy, retail, and health services.”

The company will continue to operate under Walgreens, Boots, and its portfolio of consumer brands.

Stefan Kaluzny, managing director of Sycamore Partners, said: “For nearly 125 years, Walgreens, and for 175 years, Boots, along with their portfolio of trusted brands, have been integral to the lives of patients and customers. Sycamore has a deep respect for WBA’s talented and dedicated team members, and we are committed to WBA, our customers, and patients.”

Tim Wentworth, chief executive officer of WGA, commented on the “critical role” that the company has played in the retail healthcare system.

“We are focused on making healthcare delivery more effective, convenient and affordable as we navigate the challenges of a rapidly evolving pharmacy industry and an increasingly complex and competitive retail landscape,” he said.

Progress is being made on the company’s turnaround strategy, but value creation will take “time, focus and change that is better managed as a private company,” Wentworth acknowledged.

He added: “Sycamore will provide us with the expertise and experience of a partner with a strong track record of successful retail turnarounds.”

WGA has struggled in the past few years, reports suggest, amidst a challenging retail environment and the popularity of online shopping. WGA has been working on a strategy to turn around the business’ fortunes, focusing on cost management and stabilising its retail pharmacy arm.

Reports suggest that Sycamore is expected to retain the US retail business and sell or spin off other elements of the company, such as Boots.

WGA has previously explored options to sell Boots, including in 2022 and 2024, but had not proceeded.

Boots has declined a request to comment at this time.