Walgreens Boots Alliance (WBA), the owner of UK health and beauty retailer Boots, has agreed to be sold to private equity firm Sycamore Partners for "up to $23.7 billion".

The company said that the move would better position it to become the “first choice” for pharmacy, retail and health services.

WBA currently has 12,500 locations across the US, Europe, and Latin America, employing around 311,000 people in eight countries.

The company's consumer brands include Walgreens, Boots, Duane Reade, No7 Beauty Company, and Benavides.

The retail giant will continue to operate under Walgreens, Boots, and other consumer brands, with its headquarters remaining in Chicago.

While WBA said that the total transaction figure includes net debt and capital leases, some media reports have suggested the deal will see the company sold for an equity value of roughly $10 billion.

Tim Wentworth, chief executive of WBA said that the business is focusing on improving healthcare delivery as it navigates the challenges of a "rapidly evolving pharmacy industry" and an "increasingly complex and competitive retail landscape."

"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," continued Wentworth. "Sycamore will provide us with the expertise and experience of a partner with a strong track record of successful retail turnarounds."

The transaction is expected to close in the fourth quarter of 2025.

It also includes a 35-day "go-shop" period whereby WBA will actively solicit and potentially receive alternative proposals.

“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," said Stefan Kaluzny, managing director of Sycamore Partners. "Sycamore has deep respect for WBA’s talented and dedicated team members, and we are committed to stewarding the Company’s iconic brands,” . “This transaction reflects our confidence in WBA’s pharmacy-led model and essential role in driving better outcomes for patients, customers and communities.”

In January, Boots recorded a retail sales boost of eight per cent for the first quarter of the financial year following what it described as an "exceptional" Black Friday period.

During the three months ended 30 November 2024, the health and beauty retailer saw growth across all categories and channels.

The company had a record-breaking Black Friday, with the biggest ever day of digital sales. During its busiest hour, it recorded five online orders per second.

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