New owner for Boots as parent Walgreens acquired in $10bn deal

Sycamore Partners and Walgreens Boots Alliance (WBA) have agreed a $10bn deal, which is expected to complete later this year. The transaction could ultimately be worth up to $23.7bn, dependent upon further potential payouts in future related to various aspects of the business.

It was not immediately clear what the implications of Walgreens’ sale will be for Boots, which has been performing strongly. 

Walgreens said: “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. The company will continue to operate under Walgreens, Boots and its trusted portfolio of consumer brands.”

Walgreens Boots Alliance chief executive Tim Wentworth 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…

“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.”

Sycamore Partners managing director Stefan Kaluzny said: “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.”