Boots owner WBA acquired in multi-billion dollar deal

Boots owner WBA has entered into a definitive agreement to be taken private by US-based firm Sycamore Partners in a $10 billion deal. 

The transaction, expected to be completed by the end of 2025, will attempt to better position WBA to become the "first choice" for pharmacy, retail and health services.

While Sycamore Partners will continue to operate Walgreens, Boots and its other consumer brands, the future of Boots within the firm’s portfolio remains unclear.

Under the agreement, Sycamore will acquire WBA at $11.45 per share, an 8% premium on its closing price.

Tim Wentworth, CEO of Walgreens Boots Alliance, said: "Throughout our history, Walgreens Boots Alliance has played a critical role in the retail healthcare ecosystem.

"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.

"While we are making progress against our turnaround strategy, meaningful value creation will take time, focus and change that is better managed as a private company.

"Sycamore Partners will provide Walgreens Boots Alliance with the expertise and experience of a partner with a strong track record of successful retail turnarounds. Our trusted brands and deep commitment to our customers, patients, communities and team members have and will continue to anchor our business as we realise our goal of being the first choice for pharmacy, retail and health services."

Walgreens Boots Alliance was formed through the combination of Walgreens and Alliance Boots in 2014.

At the time, the deal brought together two retail giants with "iconic brands, complementary geographic footprints, shared values and a heritage of trusted healthcare services through pharmaceutical wholesaling and community pharmacy care, dating back more than 100 years".

News of a deal first emerged in December, following WBA's previous attempt to go private in 2019. Since then, the company has faced challenges across its pharmacy operations.

With 12,500 locations across the US, Europe and Latin America, the company operates 2,000 Boots stores in the UK.

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 deep respect for WBA’s talented and dedicated team members, and we are committed to stewarding the company’s iconic brands. This transaction reflects our confidence in Walgreens Boots Alliance's pharmacy-led model and essential role in driving better outcomes for patients, customers and communities."