DEERFIELD, IL. – Walgreens Boots Alliance (WBA) has entered into a definitive agreement to be acquired by an entity affiliated with Sycamore Partners, a private equity firm specializing in retail, consumer, and distribution-related investments. According to a Walgreens press release, the total value of the transaction represents up to $23.7 billion.

“Throughout our history, Walgreens Boots Alliance has played a critical role in the retail healthcare ecosystem,” said Tim Wentworth, CEO, Walgreens Boots Alliance. “We are focused on making healthcare delivery more effective, convenient and affordable as we navigate the challenges of a rapidly evolving pharmacy industry and an increasingly complex and competitive retail landscape. While we are making progress against our ambitious turnaround strategy, meaningful value creation will take time, focus and change that is better managed as a private company.

“Sycamore will provide us with the expertise and experience of a partner with a strong track record of successful retail turnarounds,” Wentworth continued. The WBA Board considered all these factors in evaluating this transaction, and we believe this agreement provides shareholders premium cash value, with the ability to benefit from additional value creation going forward from monetization of the VillageMD businesses.”

“For nearly 125 years, Walgreens, and for 175 years, Boots, along with their portfolio of trusted brands, have been integral to the lives of patients and customers,” said Stefan Kaluzny, managing director of Sycamore Partners. “Sycamore has deep respect for WBA’s talented and dedicated team members, and we are committed to stewarding the Company’s iconic brands,” “This transaction reflects our confidence in WBA’s pharmacy-led model and essential role in driving better outcomes for patients, customers, and communities.”