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Key Takeaways
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Walgreens agreed to a $10 billion deal to be taken private by Sycamore Partners.
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The drugstore chain's stock popped in extended trading Thursday following the news.
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The deal comes after a tough stretch for Walgreens, announcing a plan last year to shutter some 1,200 "underperforming" stores.
Walgreens Boots Alliance (WBA) said Thursday it agreed to be taken private in a $10 billion deal with private equity firm Sycamore Partners.
Sycamore said it would pay $11.45 per share for the troubled drugstore chain, about 8% above Thursday's closing price. The stock rose more than 5% in extended trading to $11.19.
Investors could also receive up to $3 more per share in proceeds from the eventual sale of Walgreens’ primary care businesses, the company said, which could raise the value of the deal up to nearly $24 billion. The transaction is expected to close in the fourth quarter of 2025.
Walgreens shares rose earlier this year following previous reports of talks to take the drugstore chain private. The deal comes after a tough stretch for Walgreens, which announced in October a plan to shutter some 1,200 "underperforming" stores over the next three years. Its stock had lost about half its value in the past year though Thursday's close.
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