Walgreens Boots Alliance, the owner of Nottingham health and beauty retailer Boots, has entered into a definitive agreement to be snapped up by Sycamore Partners, a private equity firm specializing in retail, consumer and distribution-related investments, in an up to $23.7 billion transaction.
The company will continue to operate under Walgreens, Boots and its portfolio of consumer brands. WBA will maintain its headquarters in the Chicago area.
Tim Wentworth, Chief Executive Officer, 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 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 monetization of the VillageMD businesses.”
Wentworth added: “Our trusted brands and deep commitment to our customers, patients, communities and team members have and will continue to anchor our business as we realize our goal of being the first choice for pharmacy, retail and health services.
“I am grateful to the more than 311,000 team members globally who are fiercely committed to WBA, our customers and patients.”
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 WBA’s pharmacy-led model and essential role in driving better outcomes for patients, customers and communities.”
