Walgreens agrees to be acquired by private equity firm for almost $10 billion
NEW YORK (AP) — Walgreens Boots Alliance says it has agreed to be acquired by the private equity firm Sycamore Partners as the struggling retailer looks to turn itself around after years of losing money.
Walgreens said Thursday that Sycamore will pay $11.45 per share, giving the deal an equity value just under $10 billion. Shareholders could eventually receive up to another $3 per share under certain conditions.
A buyout to take the drugstore chain private would give it more flexibility to make changes to improve its business without worrying about Wall Street’s reaction. The company has already been making some big changes as it seeks to turn around its business. Walgreens has been a public company since 1927.
Walgreens, founded in 1901, has been dealing with thin prescription reimbursement, rising costs, persistent theft and inflation-sensitive shoppers who are looking for bargains elsewhere. Walgreens is in the early stages of a plan to close 1,200 of its roughly 8,500 U.S. locations.
The Deerfield, Illinois, company had already shed about a thousand U.S. stores since it grew to nearly 9,500 after buying some Rite Aid locations in 2018.
More Stories
Russia reports record-high employment rate
Workforce participation has reached 61.5%, while unemployment remains at a historic low of 2.2%, Deputy Prime Minister Tatyana Golikova has...
European Parliament drops Google citing privacy concerns – Politico
The bloc’s lawmakers have reportedly selected Qwant, formerly owned by Axel Springer, to reduce digital dependence on the US The...
Russian SMEs growing on stronger supply-chains to giants
Large companies are increasingly sourcing components from smaller home-grown suppliers, a SPIEF panel has heard Large Russian companies are increasingly...
Peers warn UK cannot afford to drag its feet on sterling stablecoin rules
The House of Lords has told the Bank of England and the FCA to keep to their timetable on stablecoin...
Americans spending more because they are ‘optimistic’? Economists challenge Trump adviser’s claim
Analysts have told RT that soaring prices, not confidence, are driving higher spending Americans are spending more on everything from...
Seventh carbon budget: Britain bets £105bn Net Zero economy can shield SMEs from the next fossil fuel shock
Britain’s small and medium-sized businesses are being placed at the centre of the most consequential climate decision since the Climate...
