Walgreens Boots Alliance has officially been acquired by private equity firm Sycamore Partners in a landmark $10 billion deal that will take the iconic drugstore chain private after nearly a century of public trading. Shareholders overwhelmingly approved the acquisition on July 11, 2025, with 96% of votes cast supporting the merger.
The buyout comes as Walgreens faces significant headwinds in the retail pharmacy industry. The company has been struggling with declining prescription reimbursements, rising costs, and changing consumer behavior. As part of its turnaround strategy, Walgreens plans to close more than 1,000 stores through 2027, having already reduced its U.S. footprint from nearly 9,500 locations in 2018 to approximately 8,500 today. Walgreens has already closed locations in New Jersey.
CEO Tim Wentworth stated that going private will allow the company to “accelerate our turnaround strategy” without the pressures of quarterly earnings expectations. The move provides Walgreens with greater flexibility to implement necessary operational changes and focus on long-term growth rather than short-term Wall Street demands.
Seniors’ Importance to Walgreens
Seniors represent a crucial customer base for Walgreens’ business model. The U.S. Census Bureau projects that by 2030, 21% of Americans will be over 65, a demographic that accounts for 37% of healthcare spending. Importantly, 60% of Walgreens’ prescriptions are for chronic conditions like diabetes and hypertension, which predominantly affect older adults.
Financial Pressures on Prescription Costs
The buyout occurs amid significant financial pressure on pharmacy margins. Declining prescription reimbursements have been a major source of Walgreens’ financial struggles. While the company hasn’t announced specific changes to prescription pricing, the heavily debt-financed nature of the buyout (with 83% debt financing) could pressure the company to find new revenue sources.
Medicare spending grew 8.1% in 2023 to $1.03 trillion, with the Inflation Reduction Act enabling drug price negotiations starting in 2026. This regulatory environment, combined with Walgreens’ financial pressures, creates uncertainty about future prescription costs for seniors.
Jersey Senior Weekly will keep seniors up to date on pharmacy changes, closures, and prescription drug costs in New Jersey. Sign up for our weekly email delivered free to your inbox every Monday morning to stay informed.