• by Sarah Mahoney  @mahoney_sarah, March 6, 2025

In a final twist on Walgreens Boots Alliance's roller-coaster ride, the company has agreed to an acquisition by Sycamore Partners.* The $10 billion buyout follows three months of rumors that Sycamore would break the company into three parts: The U.S. pharmacy retail chain, which accounts for about 78% of revenue; Boots, the U.K. pharmacy, which contributes about 16% of sales; and Shields Health Solution, which generates less than 1% of revenue, reports Morningstar.

That last component is part of the complex -- and ill-fated -- collection of U.S. healthcare companies Walgreens has acquired in recent years, including stakes in VillageMD and CareCentrix, leading to extensive losses. That strategy “failed to prove any material benefits to the pharmacy chain and rather caused more operational challenges and brought on unnecessary debt,” writes Keonhee Kim, an analyst who follows the company for Morningstar.

Last spring, Walgreens took a massive $5.9 billion quarterly loss related to the company’s VillageMD investment, and the retailer is also still paying on a $5.7 billion settlement related to its role in the opioid crisis.

The talks between Walgreens and Sycamore are said to have been on and off since December.

In quarterly results released in January, Walgreens said the company was making progress on a sweeping transformation plan. First-quarter sales rose 7.5% to $39.5 billion, while operating losses swelled to $245 million, compared to an operating loss of $39 million in the year-ago quarter. 

“While our turnaround will take time, our early progress reinforces our belief in a sustainable, retail pharmacy-led operating model," said Tim Wentworth, CEO, when delivering earning results.

Sycamore is a private equity giant with about $10 billion in capital. The company is well known for swooping in and saving ailing retailers, including Staples, Belk, Talbots, Ann Taylor Loft and Aeropostale.

*This story has been updated.