National coverage of Walgreens acquisition highlights PESP’s concerns

PESP’s concerns about the Sycamore Partners/Walgreens buyout drew significant press coverage this week, with major outlets citing the organization’s warnings about the risks posed to patients, workers, and communities.

Private equity firm Sycamore Partners has completed its more than $22 billion acquisition of Walgreens, splitting the retail pharmacy giant into five separate businesses: Walgreens, The Boots Group, Shields Health Solutions, CareCentrix, and VillageMD. The leveraged buyout — financed with over 70% debt — has sparked widespread concern over the future of one of the nation’s most important healthcare access points. In fact, in the first quarter of 2025 alone, 70% of large U.S. corporate bankruptcies were private equity-owned companies, despite private equity making up just a fraction of the overall economy.

The Private Equity Stakeholder Project (PESP) has been raising alarms about the risks of the deal, warning that debt-driven ownership could lead to store closures, layoffs, and potential bankruptcy. Walgreens operates thousands of pharmacies nationwide and employs more than 220,000 people, making its stability critical for patients and communities across the country.

Following the acquisition’s completion, PESP’s perspective was featured prominently in national media coverage.

McKnight’s Home Care

InMcKnight’s, PESP Executive Director Jim Baker underscored the risks posed by the takeover:

“This isn’t just a corporate reshuffling, it’s a debt-driven takeover that puts patients, workers and entire communities at risk.”

Chicago Tribune

TheChicago Tribune highlighted how the deal burdens Walgreens with billions in new debt. Matt Parr, a PESP spokesperson, explained the potential consequences:

“The deal with Sycamore put a lot of debt onto Walgreens that Walgreens will now have to pay off. Historically what we’ve seen with private equity closures is there is a high risk of bankruptcies, closures, layoffs.”

He emphasized the stakes for patients:

“Walgreens, however, isn’t just any retail business. Many people rely on Walgreens to fill their prescriptions, and in some communities, Walgreens is the only place to do that. When that pharmacy is closed because they’re not deemed profitable enough by Walgreens or Sycamore, you have a community that just completely lost their connection to necessary pharmacy services.”

Healthcare Dive

InHealthcare Dive, PESP’s March research update was cited, drawing attention to Sycamore’s bankruptcy track record and debt-heavy deal structure:

“This leveraged buyout tactic saddles private equity-owned companies with substantial debt, often draining resources that could otherwise be invested in innovation, workforce development, or adapting to market changes,” the organization said.

Looking ahead

The Walgreens acquisition is one of the largest private equity healthcare buyouts to date and will be closely watched for its impact on patients, workers, and communities. PESP will continue to monitor developments, ensuring that the consequences of Wall Street’s financial strategies for essential healthcare access remain part of the public conversation.