Walgreens Shareholders Approve $10 Billion Take-Private Offer By Sycamore Partners

Walgreens Boots Alliance (WBA) said on Friday that the struggling drug retailer’s shareholders approved its $10 billion buyout by New York-based private equity firm Sycamore Partners Management during a special meeting.

Walgreens stock fell marginally in midday trading. Retail sentiment around the stock improved to ‘neutral’ from the ‘bearish’ territory a day ago, according to data from Stocktwits.

According to the preliminary results, about 96% of votes cast at the special meeting by all shareholders voted in favor of the merger agreement proposal, Walgreens added.

“With Sycamore’s partnership, we will be better positioned to accelerate our turnaround strategy, further enhance the customer, patient, and team member experience, and become the first choice for pharmacy, retail, and health services. We look forward to closing the transaction and entering this next chapter,” Walgreens CEO Tim Wentworth said.

Walgreens has faced weakening demand amid strategic restructuring and shifting consumer habits. Foot traffic declined in late 2024, partly offset by a shift in visits to fewer, more efficient stores, as the company planned to shutter 1,200 locations by 2027. Its healthcare push via VillageMD also underperformed, with an underfilled patient panel.

The company’s shareholders are set to receive $11.45 per share in cash upon the completion of the Sycamore transaction. An additional $3 per share in value is expected through the future monetization of the company’s debt and equity holdings in its primary-care businesses, including Village Medical, Summit Health, and CityMD.

Walgreens expects to close the transaction in the third or fourth quarter of calendar year 2025, subject to customary closing conditions, including the receipt of required regulatory approvals.

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