NEW YORK — Walgreens Boots Alliance will be removed from the S&P 500 Index this week as the company prepares to go private in a $10 billion acquisition by Sycamore Partners. The change will take effect prior to the opening of trading on August 28, according to S&P Dow Jones Indices.
The move marks a dramatic turning point for Walgreens, once one of the most prominent names in American retail and pharmacy. Shareholders approved the buyout last month, clearing the way for Sycamore to take the company private. Investors will receive $11.45 per share in cash, with the possibility of an additional $3 from future proceeds tied to the divestiture of primary care assets, including the VillageMD business.
Walgreens’ last day of trading will be Wednesday. The stock will be halted after the close of the after-hours session and will remain suspended until it is delisted.
A Decade in the Index
Walgreens entered the S&P 500 in 2014 following its merger with Alliance Boots, which created one of the world’s largest pharmacy-led health and retail groups. At the time, the company’s scale and reach reflected a new era for global pharmacy chains. For years, Walgreens was considered a defensive stock, held by institutional and retail investors alike for its reliable business in dispensing medications and front-of-store retail sales.
In recent years, however, Walgreens has struggled to adapt to a rapidly changing healthcare and retail environment. Rising competition from rivals such as CVS and Walmart, coupled with declining foot traffic in stores, weighed heavily on results. The company also made costly investments in primary care through VillageMD, which failed to generate the growth once envisioned.
Shifts in the Benchmark
Walgreens’ departure from the S&P 500 serves as a reminder that membership in the index is contingent upon market capitalization, financial performance, and strategic direction. Its place will be taken by Interactive Brokers, a brokerage firm that has benefited from the surge in retail trading, cryptocurrency investing, and expansion into new markets.
End of an Era
For Walgreens, removal from the S&P 500 highlights the company’s reduced presence in the public markets. Once a reliable bellwether for consumer health spending, it will now begin a new chapter under private ownership. The buyout by Sycamore represents one of the largest leveraged acquisitions since the financial crisis, signaling continued appetite among private equity firms for struggling but still significant retail and healthcare assets.
