Walgreens Boots Alliance Inc. (NASDAQ:WBA) is on the brink of a significant transformation as it nears a deal with Sycamore Partners to become a private entity. The transaction, valued at approximately $10 billion, could be reportedly finalized by Thursday.
Sycamore is expected to offer between $11.30 and $11.40 per share in cash. This move follows Walgreens’ ongoing challenges, including declining sales and a tough pharmacy pricing environment. The acquisition discussions, which began in December 2024, may lead to a restructuring of the company into three separate entities: U.S. retail pharmacy, Boots UK, and U.S. healthcare.
Walgreens has been actively working to improve its retail sector by closing stores that are not profitable and reducing corporate roles.
Walgreens Boots Alliance Inc. Set to Go Private
Sycamore Partners aims to retain Walgreens’ core U.S. retail operations while potentially divesting or taking public other segments of the company. This strategy is designed to streamline operations and focus on the most profitable parts of the business. The plan to split Walgreens into three distinct entities could provide each segment with the opportunity to focus on its specific market and operational strengths.
By concentrating on U.S. retail, Sycamore intends to leverage Walgreens’ established presence in the American market, while exploring strategic options for Boots UK and the U.S. healthcare division.
Walgreens Boots Alliance’s stock has experienced notable fluctuations amid the acquisition talks. The stock opened at $10.77 on March 4, 2025, and reached a current price of $10.910 shortly before the close. The day’s trading saw a low of $10.70 and a high of $11.10, reflecting investor reactions to the potential buyout. Over the past 52 weeks, the stock has traded between a low of $8.08 and a high of $22.05, indicating significant volatility.
The company’s market capitalization stands at $9.85 billion, with a forward P/E ratio of 7.45, suggesting a cautious yet optimistic outlook from investors.
WBA Stock Brief
Walgreens’ financial indicators present a mixed picture. The company offers a dividend rate of $1.00, yielding 9.75%, which may attract income-focused investors. However, the debt to equity ratio is notably high at 281.32%, pointing to significant leverage. Analysts have set a target mean price of $12.214, with recommendations largely advising to hold the stock.
The trailing EPS is negative at -$10.24, but the forward EPS of $1.47 indicates potential improvement. The quick and current ratios, at 0.269 and 0.637 respectively, highlight liquidity concerns that the company may need to address moving forward.
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Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.