Walgreens Inventory Rises As Firm Inks $10B Deal To Go Non-public – Walgreens Boots Alliance (NASDAQ:WBA)

Walgreens Boots Alliance Inc WBA shares are buying and selling increased in Thursday’s after-hours session after the corporate introduced a deal to be acquired by Sycamore Companions.

What Occurred: After the market shut on Thursday, Walgreens introduced it entered right into a definitive settlement to be taken personal by an entity affiliated with Sycamore Companions for $10 billion.

Walgreens shareholders will obtain $11.45 per share in money at closing. Shareholders are additionally eligible to obtain as much as $3 in money per share from the long run monetization of Walgreens’ debt and fairness pursuits in VillageMD, which incorporates the Village Medical, Summit Well being and CityMD companies.

“Whereas we’re making progress in opposition to our formidable turnaround technique, significant worth creation will take time, focus and alter that’s higher managed as a personal firm. Sycamore will present us with the experience and expertise of a associate with a powerful observe report of profitable retail turnarounds,” stated Tim Wentworth, CEO of Walgreens.

“The WBA Board thought-about all these elements in evaluating this transaction, and we imagine this settlement supplies shareholders premium money worth, with the flexibility to profit from extra worth creation going ahead from monetization of the VillageMD companies.”

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Walgreens’ board unanimously accepted the proposed transaction, which is predicted to shut within the fourth quarter of 2025. Upon completion of the transaction, Walgreens will change into a personal firm and the corporate’s widespread inventory shall be delisted from the Nasdaq.

Walgreens famous it’ll launch its second-quarter monetary outcomes on April 8. Analysts at present count on the corporate to report earnings of 52 cents per share and income of $38.04 billion, in accordance with estimates from Benzinga Professional.

WBA Worth Motion: Walgreens shares have been up 5.85% after hours, buying and selling at $11.22 on the time of publication Thursday, per Benzinga Professional.

Picture: Courtesy of Walgreens Boots Alliance.