The Walgreens logo was shown at Walgreens on October 15, 2024. In San Rafael, California.
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Drugstore chain Walgreens goes privately.
The company said that on Thursday made a job With a private capital Sycamore Partners company that will remove it from a public market for a capital value of about $ 10 billion.
Sycamore will pay $ 11.45 per cash section for Walgreens, which will represent approximately 8% of the premium for the final price of the shares on Thursday. Shareholders could also get up to $ 3 per share from the sale of Walgreens in the future, including primary care companies, including Village Medical, Summit Health and Citymd.
Walgreens said the total transaction value will be up to $ 23.7 billion when they include debt and possible payment.
Walgreens and Sycamore expect to close an acceptance contract in the fourth quarter this year. Walgreens shares jumped on Thursday more than 5% in the store after working hours before they were stopped.
The historical agreement ends Walgreens’ tumultuous running as a public company, which began in 1927. From Thursday morning, the company’s shares are over 15% for 2025, but the shares have still fallen over 48% in the last year and have fallen by 70% in the last three years.
“As we progress in relation to our ambitious reversal strategy, the meaningful creation of values will take time, focusing and changes that are better managed as a private company,” said Wentworth, said the Walgreens CEO, who entered the role on Thursday on Thursday. “Sycamore will give us the expertise and experience of a partner with a strong result of successful retinal reversals.
Stefan Kaluzny, Sycamore Director General, said that in the transaction issue, he reflects the company’s confidence in Walgreens’s “model, a model guided by a pharmacy and an important role in achieving better outcomes for patients, customers and communities.”
Walgreens will hold its headquarters in Chicago. The company currently has more than 310,000 global employees and 12,500 retail locations in the US, Europe and Latin America, according to a statement. Walgreens still plans to announce his earnings in the second quarter of April 8th.
Walgreens’s market value reached the highlight of more than $ 100 billion in 2015, as investors gained confidence in their plans for health care and expanding plans, making it one of the most prominent American retail companies.
But the company’s market cap has decreased to less than $ 8 billion at the end of 2024. Due to the competition of the main rival CVs, a chain of food products, a large box sellers and Amazontogether with a series of challenges. Walgreens is squeezed by a transition from a pandemic pharmacy, pharmacy replenishment winds, softer consumer consumer consumption and problematic pressure into health care.
Both Walgreens and CVS have turned away from the years of extension of stores to close hundreds of pharmacy locations in retailing across the US to increase profits. But unlike the CVS, which is diverse its business model, offering insurance and pharmacy, Walgreens has largely doubled in its current retail pharmacy.
Walgreens said in October that he was planning close about 1,200 of your drugstores Over the next three years, including only 500 in the fiscal 2025. Walgreens has about 8,700 locations in the United States, a quarter of which says they are non -profitable. The company also reduced its pressure on primary care by cutting its share in Villagemd supplier.
Walgreens eavesdropped by the Veteran of the Wentworth Health Industry as his new executive director in late 2023 to help with his return.
The company has been allegedly understood in the past as a potential goal of private capital.
In 2019, the Private Capital of KKR made roughly A $ 70 billion redemption The Walgreens offer, the Financial Times and Bloomberg reported at the time.
