Walgreens Boots Alliance shareholders approve acquisition by Sycamore Partners
The acquisition is expected to end in the third or fourth quarter of 2025.
USA – Walgreens Boots Alliance (WBA) shareholders have overwhelmingly approved the company’s USD 10 billion acquisition by private equity firm Sycamore Partners, marking a significant move to take the iconic drugstore chain private for the first time in nearly 100 years.
The approval came during a special shareholder meeting where about 96% of votes cast favoured the merger agreement, with 95% support among unaffiliated shareholders.
Under the terms of the deal, Walgreens shareholders will receive USD 11.45 per share in cash, which represents a 29% premium over the stock price in December 2024.
In addition, shareholders may receive up to USD 3 per share from the monetization of Walgreens’ equity and debt stakes in VillageMD, the company’s physician-staffed clinic operation network that includes Village Medical, Summit Health, and CityMD.
This potential bonus brings the total transaction value to approximately USD 23.7 billion when including debt and future payouts.
Tim Wentworth, Chief Executive Officer of Walgreens Boots Alliance, stated, “With Sycamore’s partnership, we will be better positioned to accelerate our turnaround strategy, further enhance the customer, patient and team member experience and become the first choice for pharmacy, retail and health services.”
The acquisition is expected to end in the third or fourth quarter of 2025, pending customary closing conditions and regulatory approvals.
This privatization will allow Walgreens greater flexibility to pursue its turnaround strategy without the pressures and scrutiny of public markets.
WBA Q3 FY25 financial highlights
Walgreens Boots Alliance recently announced its fiscal third-quarter results, reporting net sales of USD 39.0 billion, marking a 7.2% increase year-over-year.
Walgreens posted a net loss of USD 175 million, reversing the USD 344 million in net earnings from the same quarter last year.
The decline primarily reflected the absence of prior-year gains from divestments related to Cencora, combined with elevated tax expenses.
Operating income declined to USD 53 million, primarily due to a non-cash impairment charge on long-lived assets.
Adjusted operating income decreased to USD 558 million from USD 613 million in the third quarter of fiscal 2024.
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