Walgreens Bought by Sycamore

Walgreens Boots Alliance (Deerfield, Ill.) announced that it has entered into a definitive agreement to be acquired by a unit of Sycamore Partners (New York), a private equity firm specializing in retail, consumer and distribution-related investments. The total value of the deal represents up to $23.7 billion.

“This transaction reflects our confidence in (Walgreens’) pharmacy-led model and essential role in driving better outcomes for patients, customers and communities,” Stefan Kaluzny, Managing Director of Sycamore Partners, whose current retail-related investments include Hot Topic, Loft/Ann Taylor, Stapes, Talbots, The Limited and Torrid. (Holdings it has exited include Aerpostale, Belk, Coldwater Creek, Express, Kurt Geiger and Stuart Weitzman.)

Said Walgreens Boots Alliance CEO Tim Wentworth: “Sycamore will provide us with the expertise and experience of a partner with a strong track record of successful retail turnarounds.”

The deal, which is subject to shareholder approval, is expected to close by the end of this year. Like many other pharmacies chains, Walgreens has been making major cuts in its store count in recent years — though it still has about 12,500 locations across the U.S., Europe and Latin America. Walgreens’ headquarters will remain in suburban Chicago.