Walgreens Stock Rises As Company Inks $10B Deal To Go Private

Walgreens Boots Alliance Inc WBA shares are trading higher in Thursday’s after-hours session after the company announced a deal to be acquired by Sycamore Partners.

What Happened: After the market close on Thursday, Walgreens announced it entered into a definitive agreement to be taken private by an entity affiliated with Sycamore Partners for $10 billion.

Walgreens shareholders will receive $11.45 per share in cash at closing. Shareholders are also eligible to receive up to $3 in cash per share from the future monetization of Walgreens’ debt and equity interests in VillageMD, which includes the Village Medical, Summit Health and CityMD businesses.

“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,” said Tim Wentworth, CEO of Walgreens.

“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.”

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Walgreens’ board unanimously approved the proposed transaction, which is expected to close in the fourth quarter of 2025. Upon completion of the transaction, Walgreens will become a private company and the company’s common stock will be delisted from the Nasdaq.

Walgreens noted it will release its second-quarter financial results on April 8. Analysts currently expect the company to report earnings of 52 cents per share and revenue of $38.04 billion, according to estimates from Benzinga Pro.

WBA Price Action: Walgreens shares were up 5.85% after hours, trading at $11.22 at the time of publication Thursday, per Benzinga Pro.

Photo: Courtesy of Walgreens Boots Alliance.