TLDR
- Walgreens Boots Alliance (WBA) was removed from major S&P indices including the S&P 500 on August 28, 2025
- The company is being delisted after market close today following shareholder approval of merger with Blazing Star Parent, LLC
- Shareholders will receive $11.45 per share in cash plus one divested asset proceed right for potential future value
- Stock has gained 28-31% year-to-date despite ongoing retail challenges and $30 billion debt load
- Company will continue operations as a privately held subsidiary, ending its public trading status
Walgreens Boots Alliance completed its exit from public markets today as the pharmacy chain was delisted following the close of trading on August 28, 2025. The move caps off a turbulent period that saw the company removed from major stock indices and acquired by private equity.
The company’s removal from the S&P 500 and S&P Global 1200 earlier today marked the end of its run in the prestigious index. Index removals typically trigger automatic selling by passive funds that track these benchmarks.
Shareholders approved the merger with Blazing Star Parent, LLC earlier this year. Under the deal terms, investors receive $11.45 per share in cash plus one divested asset proceed right that could provide future value.
The stock traded around $11.92 to $11.99 in recent sessions, slightly below the cash payout amount. This narrow discount reflects the certainty of the merger completion and timeline.
Financial Restructuring Ahead of Deal
Walgreens has been busy cleaning up its balance sheet before going private. The company extended its debt tender offer to meet closing requirements for the merger.
High participation rates in the debt offers showed investor confidence in the deal process. The pharmacy chain carries approximately $30 billion in total debt.
Despite the debt burden, the company maintained an attractive dividend yield of 8.39% for income-focused investors. That dividend will end with the delisting.
The stock posted gains of 28-31% year-to-date even as the company faced headwinds. Declining retail sales and pressure on profit margins have challenged the business model.
Store optimization efforts included closing underperforming locations to improve the network’s profitability. Management focused on creating a healthier store footprint with better margins.
Valuation Models Paint Mixed Picture
Analyst price targets aligned closely with the merger price, confirming market expectations. The consensus view suggested the stock was fairly valued at current levels.
A discounted cash flow analysis from Simply Wall St suggested the stock could have been undervalued. This model pointed to a fair value of $11.93, just above the merger price.
The competing valuation approaches highlighted the uncertainty around Walgreens’ standalone prospects. Retail pharmacy faces ongoing pressures from online competition and changing consumer habits.
Legal settlement costs from various litigation matters also weighed on the company’s financial outlook. These expenses reduced available cash for growth investments and shareholder returns.
Blazing Star Parent, LLC will take full control of operations going forward. The new ownership structure removes public market pressures and quarterly reporting requirements.
Former shareholders now hold cash and the potential for future payments through the divested asset rights. The actual value of these rights remains uncertain and depends on future asset dispositions.
Walgreens Boots Alliance stock completed its final day of public trading with the merger closure, ending decades as a public company.
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