Walgreens to go private in $10B deal

The Walgreens Boots Alliance Series announced on Thursday that it will become private.

The troubled company has concluded an agreement with SYCAMORE PARTNERS, which is worth $ 10 billion. SYCAMORE $ 11.45 per share, which is 8 %, will pay the stock rate of $ 10.60 on Thursday. The shares of the company increased by approximately 6 % in extended trading.

Walgreens shareholders can also get an additional $ 3 in cash from liquefying the future of the company’s debts and stock interests in Villagemd.

Analyst says that Walgrens can reduce costs if it is private owned.

Walgrens Boots Alliance has an agreement with SYCAMORE PARTNERS, which is worth $ 10 billion. (Leonardo Munoz / Viewpress / Getty Images)

The company’s market value has shrunk to more than 9 billion dollars from about $ 100 billion a decade before a decrease in drug prices and consumers turned into cheaper competitors than Amazon and Wall Mart to fill their recipes and buy hygiene supplies.

When the competitors diversified the insurance management or prescriptions, Walgreens invested billions of dollars in buying other pharmacy chains despite the trend away from shopping inside the store.

As a result, the second largest debt and leasing of the American pharmacy chain increased to nearly 30 billion dollars.

Walgreens shareholders can also get an additional $ 3 in cash from liquefying the future of the company’s debts and stock interests in Villagemd. (Luke Sharrtt / Bloomberg via Getty Images / Getty Images)

As a private company, WBA [Walgreens Boots Alliance] “He will have more flexibility to make significant changes in business, in our opinion, and strongly reduce costs to try to face modern challenges with pharmacy operating margins and decrease in retail sales from increased online competition,” said Big Mayer, a CFRA research analyst for Fox Business in December.

Why do live pharmacies close

In October, the company, which is struggling with competition from its competitors such as Amazon, announced plans to close at least 1,200 stores over the next three years. This step is part of its efforts to close a “important” number of weak sites throughout the United States in response to these challenges.

In October, the company, which is struggling with competition from its competitors such as Amazon, announced plans to close at least 1,200 stores over the next three years. (Istock / Istock)

SYCAMORE PARTNERS, a private stock company specialized in retail and consumers, has a busy record in getting stalled retailers for profit; Among them are brands such as Staples, Talbots and Nine West.

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Fox Business’ Daniella Genovese and Reuters contributed to this report.