Walgreens Boots Alliance to Sycamore Partners

General Retail/Aug 2025/Centerview, Morgan Stanley

Deal Information

Target

Walgreens Boots Alliance

Acquiror

Sycamore Partners

Sector

General Retail

Target Type

Public

Acquiror Type

Financial

Advisors

Centerview, Morgan Stanley

Enterprise Value

$23.6B

EV / LTM Sales

EV / LTM EBITDA

6.1x

EV / Fwd EBITDA

Comparable transactions cited by the advisor, excluding the subject transaction.

TEV/LTM EBITDA selected range: 5.5x - 7.5x

11 comps


May 2022	The Fresh Market, Inc.	Cencosud S.A.	$1.6B	-	8.0x	-
May 2021	Smart & Final Stores, Inc.	Bodega Latina Corp.	$600M	-	3.7x	-
Apr 2019	Smart & Final Stores, Inc.	Apollo Global Management, LLC	$1.1B	-	6.5x	-
Jul 2018	Supervalu Inc.	United Natural Foods, Inc.	$2.9B	-	7.0x	-
Jun 2017	Whole Foods Market, Inc.	Amazon.com, Inc.	$13.7B	-	10.6x	-
Oct 2016	Save-A-Lot	Onex	$1.4B	-	7.0x	-
Mar 2016	The Fresh Market, Inc.	Apollo Global Management, LLC	$1.4B	-	7.1x	-
Nov 2015	Roundys, Inc.	The Kroger Co.	$800M	-	6.9x	-
Dec 2024	Nordstrom, Inc.	Nordstrom Family, El Puerto de Liverpool S.A.B. de C.V.	$6.3B	-	5.7x	-
Jun 2017	Staples, Inc.	Sycamore Partners	$6.6B	-	5.0x	-
Aug 2015	Belk, Inc.	Sycamore Partners	$2.8B	-	6.9x	-
	Mean			-	6.8x	-
	Median			-	6.9x	-

AV/LTM EBITDA selected range: 5.0x - 8.0x

15 comps

Discount rate and terminal value assumptions the advisor selected for its discounted cash flow analysis.

WACC: 9.0% – 10.3%
Terminal method: Both
Terminal assumption: Exit multiple 5.0x – 7.0x (LTM Adj. EBITDA); Perpetuity growth -1.2% – 2.6%
Forecast basis: Management Projections (unlevered free cash flows calculated as consolidated Adj. EBITDA… more
Management Projections (unlevered free cash flows calculated as consolidated Adj. EBITDA with adjustments for VPMC Group asset sale, share-based compensation treated as cash expense, unlevered cash taxes, capex, NWC, non-dark rent lease assets, settlement payments, Cencora monetization, file buys, UK pension contribution, and VPMC Group asset sale proceeds)
Forecast period: second half of fiscal 2025 through fiscal 2029

Advisor	WACC	Terminal method	Terminal assumption	Forecast basis	Forecast period	Filing
Centerview	9.25% – 10.75%	Exit multiple	5.0x – 7.0x (LTM EBITDA ending August 31, 2029)	the Forecasts (Management Forecasts / Internal Data)	August 31, 2025 through August 31, 2029	Open
Morgan Stanley	9.0% – 10.3%	Both	Exit multiple 5.0x – 7.0x (LTM Adj. EBITDA); Perpetuity growth -1.2% – 2.6%	Management Projections (unlevered free cash flows calculated as consolidated Adj. EBITDA… more Management Projections (unlevered free cash flows calculated as consolidated Adj. EBITDA with adjustments for VPMC Group asset sale, share-based compensation treated as cash expense, unlevered cash taxes, capex, NWC, non-dark rent lease assets, settlement payments, Cencora monetization, file buys, UK pension contribution, and VPMC Group asset sale proceeds)	second half of fiscal 2025 through fiscal 2029	Open