On March 6, 2025, the largest leveraged buyout (LBO) of the year so far–and the third-largest healthcare LBO in U.S. and European history–was announced. Walgreens Boots Alliance, Inc. (WBA) is set to be acquired by Sycamore Partners Management, L.P. in a deal valued at US$23.7 billion. The transaction includes $10 billion in acquisition agreement, as well as cash offers, potential considerations, and the addition of liabilities and settlements. The acquisition is expected to be finalised in the fourth quarter of 2025.
Walgreens Boots Alliance, INC. (WBA)
Walgreens Boots Alliance, Inc. (WBA) is a global healthcare and retail leader, with a 175-year
heritage in the industry. WBA operates in eight countries with approximately 12,500 locations and 311,000 employees worldwide. Its key consumer brands include:
- Walgreens
- Boots
- Duane Reade
- No7 Beauty Company
- Benavides
Timeline of Walgreens Boots Alliance (WBA)
Sycamore Partners Management, L.P
Founded in 2011, Sycamore Partners is a private equity firm specialising in consumer, distribution and retail-related investments. The firm partners with management teams to enhance operational profitability and maximise strategic value of their business. Since its inception, Sycamore Partners has raised approximately $10 billion in committed capital.
Notably, Sycamore has a history of acquiring struggling retailers, including Staples, where it implemented asset sales and store closures to reduce debt and operational costs. A similar strategy may be applied to WBA post-acquisition.
Key Advisors in the Transaction
This major acquisition involves some of the biggest financial, legal, and healthcare advisory firms:
Impact on Walgreens Boots Alliance
Following the completion of the acquisition, WBA will transition from a publicly traded company on the Nasdaq to a privately held entity under Sycamore Partners. This shift is expected to provide greater operational flexibility and enable strategic restructuring, hopefully strengthening its position in the integrated healthcare, pharmaceutical, and retail sectors.
Impact on Investors
WBA shareholders will receive:
- $11.45 per share in cash upon the transaction’s closing
- A non-transferable Deferred Additional Payment (DAP) right of up to $3.00 per WBA share
The Future of WBA
WBA has faced financial struggles in recent years, largely due to competition from online and major retailers such as Amazon, Walmart, and Target. As a result, WBA has been scaling back operations, including its planned closure of 1,200 stores in the US since late 2024. Given Sycamore’s past approach with Staples, it is likely that WBA will undergo further asset sales to reduce debt, additional store closures to cut operational costs, and restricting efforts aimed at streamlining business functions. While the future of WBA remains uncertain, Sycamore’s expertise in retail and consumer investments could provide the company with a path toward financial stability and renewed growth.