Walgreens Boots Alliance’s shareholders have given their strong approval for a $10 billion buyout by private equity firm Sycamore Partners. This decision comes during a challenging time for national pharmacy chains, including Walgreens, CVS, and Rite Aid, which are all facing difficulties due to shifts in consumer habits, lower pharmacy reimbursements, and increasing operational costs.
As part of this deal, Walgreens plans to close more than 1,000 of its stores by 2027. Rite Aid recently filed for bankruptcy protection, marking its second such attempt in two years. Shareholders will receive $11.45 for each share, with the potential for an additional $3 per share based on future gains from the company’s involvement with its VillageMD clinics.
This acquisition will remove Walgreens from the public market, offering the company greater freedom to implement necessary changes without the pressure from Wall Street. Founded in 1901 and publicly traded since 1927, Walgreens is now working on a turnaround strategy, according to CEO Tim Wentworth.
In the wake of this news, Walgreens stocks remained steady at around $11.50, a sharp decline from their value of over $30 just two years ago. Last fall, the company revealed plans to shutter 1,200 of its approximately 8,500 locations in the U.S. The Deerfield, Illinois-based chain has already reduced its store count by around 1,000 since it expanded after acquiring some Rite Aid locations in 2018.
