Walgreens shareholders approve the acquisition of $ 10 billion Sycamore

Diving brief:

• Walgreens’ shareholders have massively approved the previously announced acquisition of $ 10 billion from the company by the Sycamore Partners, according to a press release on Friday.
• The preliminary results show that around 96% of the votes expressed by shareholders were favorable to the merger agreement between the Walgreens and publicly detained sycamores. The first results also revealed that around 95% of shareholders not affiliated voted for the merger.
• The agreement is expected to conclude during the third or fourth quarter of 2025. Shareholders will receive $ 11.45 per action in cash and could earn $ 3 per additional share of the future sale of Villagemd companies, which include MEDICAL Village, Summit Health and Citymd. The total value of the transaction represents nearly $ 24 billion, including debt and future payments, according to the company.

Diving insight:

The acquisition of the company and its path to privatization are involved while Walgreens sales continue to decline. The retail sales of the second row of the retailer decreased by 5.3% from one year to the next, while it turned to red, declaring a net loss of $ 175 million.

Walgreens announced in October that it would close 1,200 of its stores in the next three years as part of a recovery strategy.

The retailer had invested massively in health services in recent years, especially towards billions of dollars in the Primary Care Villagemd. However, the company fought financially and Walgreens began to close underperformative clinics. Last year, Walgreens said he was considering a full sale of VillageMD.

The Retaler’s US health care segment said $ 2.1 billion in the third quarter ending on May 31, a drop of $ 23 million compared to the previous year driven by a drop in Villagemd sales. The unit declared an operating loss of $ 64 million.

After the conclusion of the agreement, Walgreens will become a private company for the first time in almost 100 years.

“We appreciate the consideration and overwhelming support of our shareholders in our value maximization transaction with Sycamore,” said Tim Wentworth, CEO of Walgreens, in a press release. “With the Sycamore partnership, we will be better placed to accelerate our recovery strategy, further improve the experience of the customer, the patient and the team members and become the first choice for pharmacy, retail and health services. We can’t wait to close the transaction and enter this next chapter. ”

Walgreens is not the only big pharmacy chain to have difficulties in recent years. Rite Aid has filed two bankruptcies in the past two years, with its last chapter 11 deposit in May, only eight months after emerging from its first.

Health diving journalist Emily Olsen contributed to the reports