Walgreens Boots Alliance has finally found a buyer. After several attempts to sell the business that reportedly faltered on the issue of price, it’s definitely being bought by Sycamore Partners for $10 billion, which is around the level it had been aiming for when it first explored a sale a few years ago.

It means that the dominant beauty and health retailer in Britain — Boots — and the second-largest US drugstore chain — Walgreens — will now be part of a private company, along with the other parts of the WBA business.

Sycamore is paying $11.45 a share in cash, a roughly 8% premium to the closing price in New York.

But while the price is what WBA was aiming for, it’s still a radical comedown from Walgreens’ value a decade ago. Back then the business had a market value above $90 million. But it has been hit hard by intense competition and other issues affecting both the retail and non-retail parts of the giant congolmerate.

The deal isn’t expected to complete until Q4 2025 and even incudes a period when Walgreens will seek and assess other offers. But analysts don’t expect another bid to come in that will top what Sycamore is offering. 

Sycamore’s plans for the two core chains aren’t yet known but there’s a chance that Walgreens and Boots might one day be split and perhaps listed as independent stock exchange-traded operations. The business logic of running two chains on opposite sides of the Atlantic might not be as clear to Sycamore as it was to the execs who pulled the separate parts of the business together back in 2014.

The main architect of that deal — executive chairman Stefano Pessina — and his holding company will maintain a significant equity investment in the businesses.

As mentioned, the company has faced challenges with both Walgreens and Boots having closed stores in recent years but Boots at least appears to be back on a growth trajectory.

In its latest quarter, reported in January, comparable retail sales increased 8.1% and webstore sales rose 30%, aided by a strong Black Friday performance and representing 22% of Boots total retail sales.

For now though, it will be business as usual and WBA CEO Tim Wentworth said: “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.

“Our trusted brands and deep commitment to our customers, patients, communities and team members have and will continue to anchor our business as we realise our goal of being the first choice for pharmacy, retail and health services. 

Stefan Kaluzny, MD of Sycamore Partners, added: “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. Sycamore has deep respect for WBA’s talented and dedicated team members, and we are committed to stewarding the company’s iconic brands.”