It is a rough era for national pharmacy chains like Walgreens, CVS, and Rite-Aid, closing hundreds of stores due to changing consumer behavior, declining pharmacy reimbursements and rising costs. Walgreens will close more than 1,000 stores through 2027 and Rite-Aid filed for bankruptcy protection in May, it’s second trip to bankruptcy court in as many years.
Walgreens shareholders will receive $11.45 per share from Sycamore Partners per the terms of the deal first announced in March, the companies said Friday. They could also receive as much as an additional $3 per share from the future monetization of Walgreens’ debt and equity interests in its VillageMD clinic business.
The buyout, which will take the drugstore chain private, will give it more flexibility to make changes to improve its business without worrying about Wall Street’s reaction. Walgreens was founded in 1901 and has been a public company since 1927...
RSK: To tell you the truth, the Walgreens I have been in lately are run down and shabby. And for me, once a private equity firm buys something out, the service goes down hill, just like my Veterinarian did. There will be some good corner locations coming up and that is what the PE people are betting on in making their return on investment.
Ken Notes: I am surprised Amazon was not at the table, this is clearly a market they want a BIG part of.
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- - Volume: 25 - WEEK: 29 Date: 7/15/2025 12:22:07 PM -