Behind the Money

Retail’s last barbarian takes on Walgreens Boots

Mar 26, 2025

In this discussion, Amelia Pollard, a Due Diligence reporter for the Financial Times, breaks down Sycamore Partners' bold acquisition of Walgreens Boots Alliance. She outlines the challenges that led Walgreens to this pivotal moment, including fierce e-commerce competition and operational struggles. Amelia highlights how Sycamore's typical strategies, including cost-cutting, might be applied here, and the risks involved in navigating the tricky landscape of healthcare retail. Can Sycamore pull off a successful turnaround for this troubled giant?

19:38

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Amelia Pollard

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Quick takeaways

Sycamore Partners' $24 billion acquisition of Walgreens Boots Alliance highlights a bold shift in private equity towards the struggling retail sector amid e-commerce pressures.

The challenging landscape for Walgreens Boots includes opioid liabilities and operational difficulties, complicating Sycamore's restructuring strategies and raising public service concerns.

Deep dives

The Struggles of Brick-and-Mortar Pharmacies

Brick-and-mortar pharmacies are facing significant challenges, particularly as e-commerce continues to grow in popularity. A visit to a Duane Reade shop reveals the frustrations of consumers trying to find common items like conditioner, which may be difficult to locate or even locked behind glass. This indicates a broader issue where traditional pharmacies are struggling to compete with online retailers like Amazon. Additionally, the share price of Walgreens Boots Alliance has plummeted from around $100 billion in 2015 to just $9 billion today, highlighting the industry's struggles amidst rising operational difficulties.

Intro

2min

The Decline of Walgreens Boots and a New Era of Private Equity

2min

Retail Resurgence: Sycamore Partners' Bold Moves

7min

Navigating the Complexities of a Pharmacy Acquisition

2min

Challenges and Strategies for Walgreens Boots

7min

Years ago, an ailing company like Walgreens Boots Alliance may have seemed like a prime acquisition target for deal-hungry private equity firms. But many have backed away from retail recently, leaving an opening for groups like Sycamore Partners who are willing to buck the trend. Sycamore announced this month that it would take the global pharmacy business private in a $23.7bn debt and equity deal. The FT’s Due Diligence reporter, Amelia Pollard, explains the well-worn playbook that Sycamore has used on past retail companies, and whether it will work this time with a chain that has its own share of unique problems.

Clips from Bloomberg, CNBC, CBS

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For further reading:

Retail’s last barbarian: the private equity group about to play hardball with Boots

What went wrong after Walgreens bought Boots?

Walgreens bondholders could be winners from its debt-laden buyout

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Follow Amelia Pollard (@ameliajpollard) on X or (@pollard.bsky.social) on Bluesky. Michela Tindera is on X (@mtindera07) and Bluesky (@mtindera.ft.com), or follow her on LinkedIn for updates about the show and more.

For more from Amelia and her team, sign up for the Due Diligence newsletter.

Read a transcript of this episode on FT.com

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