Walgreens goes private, splits into 5 companies: 8 things to know

Walgreens Boots Alliance has officially gone private following its acquisition by New York City-based private equity firm Sycamore Partners, the companies announced Aug. 29.

Eight things to know:

1. Deal terms and valuation. Walgreens shareholders approved the $10 billion acquisition at a July 11 special meeting. Shareholders received $11.45 per share in cash, totaling about $9.9 billion based on Walgreens’ 865 million outstanding shares. They may also receive up to an additional $3 per share from the monetization of Walgreens’ stake in VillageMD, bringing the total deal value up to $23.7 billion.

2. Structure under private ownership. Walgreens Boots Alliance will now operate as five standalone companies: Walgreens, The Boots Group, Shields Health Solutions, CareCentrix and VillageMD. Each will continue to function independently, with Sycamore aiming to preserve their existing brands and customer relationships.

3. Rationale behind the sale. Walgreens began exploring a potential sale in December after announcing plans to close approximately 1,200 retail stores over three years, including 500 in fiscal 2025. The company said the move to go private would better support a long-term turnaround strategy and strengthen its positioning in pharmacy, retail and health services.

4. Leadership change. Walgreens appointed Mike Motz CEO, effective Aug. 28. He replaces Tim Wentworth, who will remain on the company’s board. John Lederer, a former Walgreens Boots Alliance director and senior advisor to Sycamore, was named executive chairman of Walgreens. 

5. Headquarters and future direction. Walgreens will retain its name and Chicago headquarters. While Sycamore’s acquisition provides the company with more flexibility, Mr. Wentworth has cautioned that generating long-term value will take time, focus and continued investment amid a changing pharmacy and retail landscape.

6. Dividend suspension. In January, Walgreens suspended its quarterly cash dividend for the first time since 1932. The decision was made to reassess capital allocation and stabilize finances during the company’s transformation.

7. Financial performance. Walgreens reported $38.6 billion in sales for the second quarter of fiscal 2025, a 4.1% increase from the same quarter last year. Despite revenue growth, the company posted a $5.6 billion operating loss, largely driven by non-cash impairment charges tied to VillageMD and its retail pharmacy unit. This was an improvement on the $13.2 billion operating loss the company posted in the second quarter last year. 

8. Ongoing financial headwinds.  The company recorded a net loss of $2.9 billion in the second quarter, compared to a $5.9 billion net loss in the same quarter in 2024. Free cash flow for the quarter was negative $418 million, though that represented a $192 million improvement from a year earlier.

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