Walgreens Boots Alliance to be bought by PE firm Sycamore in $10bn deal

(Sharecast News) - Walgreens Boots Alliance has agreed to be bought by private equity firm Sycamore Partners in a $10bn deal. In a statement on Thursday, Walgreens - the US owner of the Boots chemist chain in the UK - said Sycamore will pay $11.45 per share in cash.

Shareholders could also receive an additional $3 per share in cash from the future monetization of Walgreens' debt and equity interests in VillageMD, which includes the Village Medical, Summit Health and CityMD businesses.

Tim Wentworth, chief executive of Walgreens Boots Alliance, 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.

"The WBA board considered all these factors in evaluating this transaction, and we believe this agreement provides shareholders premium cash value, with the ability to benefit from additional value creation going forward from monetization of the VillageMD businesses."

The deal is expected to complete in the fourth quarter of this year.