Walgreens Takes Major Step Toward Becoming Private Company Again

Core Viewpoint - Walgreens Boots Alliance Inc. is moving forward with its plan to go private after shareholders approved the acquisition by Sycamore Partners, with approximately 96% of votes in favor of the merger agreement [2][3]. Group 1: Acquisition Details - The acquisition deal is valued at around $10 billion, with Walgreens shareholders set to receive $11.45 per share in cash at closing, which is approximately 8% above the stock's value at the time of the offer [5][6]. - The total value of the deal, including debt and potential payouts, could rise to $23.7 billion [7]. - The transaction is expected to close in the third or fourth quarter of calendar year 2025, pending regulatory approvals, after which Walgreens will no longer be listed on the Nasdaq [5]. Group 2: Financial Performance - Walgreens reported a net loss of $175 million, or 20 cents per share, in its fiscal third quarter ended May 31, compared to a net income of $344 million, or 40 cents per share, in the same period last year [8]. - Total sales for the third quarter increased by 7% to $39 billion, exceeding market expectations as the company continues its turnaround strategy [8]. Group 3: Strategic Outlook - The CEO of Walgreens expressed appreciation for shareholder support and emphasized that the partnership with Sycamore will enhance the company's turnaround strategy and improve customer and employee experiences [4][5]. - The board of Walgreens believes that the agreement provides shareholders with premium cash value and the potential for additional value creation from the monetization of VillageMD businesses [12]. Group 4: Company Overview - Walgreens Boots Alliance operates approximately 12,500 pharmacy locations across the U.S., Europe, and Latin America, employing around 312,000 people [10]. - The company includes well-known consumer brands such as Walgreens, Boots, Duane Reade, No7 Beauty Company, and Benavides [10]. Group 5: Legal and Regulatory Issues - Walgreens has agreed to pay up to $350 million in a settlement with the U.S. Department of Justice related to the issuance of millions of prescriptions for opioids and other controlled substances over the past decade [11].