Boots’ American parent company WBA has finally been sold off in a long-anticipated deal with private equity firm Sycamore Partners, it announced late last night (March 6).
“The total value of the transaction represents up to $23.7 billion,” it said.
It appears to include Boots UK.
Read more: Boots pharmacists given pension update - as WBA sale reignites
“The transaction is expected to close in the fourth quarter calendar year 2025, subject to customary closing conditions,” WBA added.
These include “approval by WBA shareholders – including a majority of votes cast by WBA shareholders...and the receipt of required regulatory approvals”, it said.
“Upon completion of the transaction, WBA’s common stock will no longer be listed on the Nasdaq Stock Market and WBA will become a private company,” WBA added.
“Better positioned”
WBA last night announced that “it has entered into a definitive agreement to be acquired by an entity affiliated with Sycamore Partners”.
“Leveraging WBA’s healthcare expertise and Sycamore’s established leadership in retail and consumer services, WBA will be better positioned to become the first choice for pharmacy, retail and health services,” it said.
“The company will continue to operate under Walgreens, Boots and its trusted portfolio of consumer brands,” WBA added.
Read more: WBA suspends dividends to ‘improve cash flow’ in 90-year first
The company said that the deal now allows “a so-called ‘go-shop’ period, during which WBA…will actively solicit and depending on interest, potentially receive, evaluate and enter into negotiations with parties that offer alternative proposals”.
“The initial go-shop period is 35 days [but] there can be no assurance that this process will result in a superior proposal,” it added.
“Retail turnaround”
Commenting on the takeover, WBA chief executive Tim Wentworth said that the company is “focused on making healthcare delivery more effective, convenient and affordable”.
“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,” he added.
“Sycamore will provide us with the expertise and experience of a partner with a strong track record of successful retail turnarounds,” he said.
Read more: WBA stock tumbles amid reports that sale deal is ‘dead’
“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 Partners managing director Stefan Kaluzny added.
And he said that the private equity firm has “deep respect for WBA’s talented and dedicated team members and [is] 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,” he added.
WBA latest
The announcement comes after Bloomberg last month revealed that WBA was back in talks to “sell itself” to the firm, after the Wall Street Journal reported the sales talks were “mostly dead” in January.
The new sale rumours came after WBA announced in 2022 that it had ultimately decided not to sell its UK pharmacy chain Boots.
In January, WBA halted its quarterly stockholders’ dividends - ending 92 consecutive years of payouts - in a move aimed at “strengthening WBA’s balance sheet”.
Read more: WBA sued for pharmacist pressure to dispense ‘millions of unlawful scripts’
In the same month, WBA revealed that it made a loss of $265 million in the first fiscal quarter of 2025.
The results showed a shocking 296% increase in losses from the year-ago quarter, when losses stood at $67m.
WBA said at the time that the new results were “primarily driven by higher operating loss”.
