Walgreens shareholders back $10 billion buyout by Sycamore Partners

In the United States, Walgreens Boots Alliance shareholders overwhelmingly supported a $10 billion offer from private equity firm Sycamore Partners. This decision was made during a special meeting of shareholders, held on a Friday in July 2025, where approximately 96% of the votes cast were in favor of the acquisition proposal. The buyout, initially announced in March, will see shareholders receiving $11.45 per share, representing an increase of 29% over the stock price from December 2024. Additionally, there is potential for shareholders to receive up to $3 in cash per share from the future monetization of Walgreens' interests in its clinic business, VillageMD. The deal attracted significant attention as Walgreens has been struggling with financial losses and changing market dynamics. Under the leadership of former CEO Roz Brewer, the company had invested heavily in VillageMD, aiming to establish a network of physician-staffed clinics. However, they faced considerable challenges, including difficulties in patient panel fills and resulting financial losses. These issues contributed to a net loss of more than $8 billion for Walgreens in fiscal 2024, prompting the need for significant operational changes. Tim Wentworth, the current CEO, expressed gratitude for the shareholders' support during the transition, stating that the partnership with Sycamore would better position the company to implement its turnaround strategies. The move to sell to a private equity firm is anticipated to provide Walgreens with the flexibility needed to innovate without the pressures of public market scrutiny. The deal's approval signifies a pivotal moment for Walgreens, a company founded in 1901 and publicly traded since 1927. Amidst widespread store closures in the pharmacy industry, Walgreens announced plans to close over 1,000 locations by 2027 to adapt to shifting consumer behaviors and rising operational costs. As pharmacy chains like Walgreens and Rite-Aid face challenges such as declining reimbursements and competitive pressures, securing private investments through buyouts may offer a lifeline for companies seeking to stabilize their operations and explore new business developments.