The total value of the deal represents up to $23.7 billion, according to a March 6 news release. Walgreens shareholders will receive $11.45 per share in cash at closing, totaling about $9.9 billion based on Walgreen’s 865 million outstanding shares.
Shareholders may also receive up to $3 per share from the future monetization of Walgreen’s debt and equity interests in VillageMD, which includes Village Medical, Summit Health and CityMD. If fully realized, the deal could reach up to $23.7 billion. Cigna’s Evernorth subsidiary holds a minority stake in VillageMD.
Walgreens was in talks to sell itself to Sycamore Partners in December after the company revealed it would close around 1,200 retail stores in a three-year timeframe, including about 500 closures in fiscal 2025.
In late January, the company suspended its quarterly cash dividend for the first time since 1932 to reassess capital allocation as part of its long-term turnaround strategy.
The company will continue to operate under the Walgreens name and maintain its Chicago headquarters. The transaction is expected to be complete in the fourth quarter of 2025.
“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,” Tim Wentworth, CEO of Walgreens Boots Alliance, said in the release. “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.”
