Walgreens to go private in $10B deal

Group 1 - Walgreens Boots Alliance has entered into an agreement with Sycamore Partners to go private, valued at $10 billion, with a share price of $11.45, representing an 8% premium over the closing price of $10.60 [1] - The company's market value has significantly decreased from nearly $100 billion a decade ago to just over $9 billion due to declining drug price margins and competition from Amazon and Walmart [3] - Walgreens plans to close at least 1,200 stores over the next three years as part of a strategy to address underperforming locations in response to increased competition [6] Group 2 - The company's debt and lease obligations have increased to almost $30 billion, indicating financial strain [4] - Analysts suggest that as a private entity, Walgreens would have greater flexibility to implement major changes and aggressively cut costs to address challenges in pharmacy operating margins and declining retail sales [5] - Sycamore Partners has a history of acquiring distressed retailers, which may indicate a strategic approach to revitalize Walgreens [7]