In March of 2025, Walgreens Boots Alliance – once a pillar of American retail pharmacies – agreed to be acquired by Sycamore Partners – a private equity firm – in a $10 billion deal. This move resulted in the end of Walgreens’ nearly century-long presence in public markets and marked the commencement of a possible major transformation in the U.S. pharmacy landscape. This acquisition was not just another corporate transaction. Beneath the surface lies a deeper moral question: What does the fall of Walgreens mean for the common good, especially in an era where private equity firms are rapidly taking over many facets of the healthcare industry? From a Catholic Social Teaching perspective, this acquisition offers more than just an economic case study. It serves as a litmus test for whether modern financial structure and transactions truly serve the dignity of the human person, the health of families and communities, and the pursuit of the common good over profit.

When founding Walgreens in 1901, Charles R. Walgreen had a mission and belief that “honest goods can be sold to honest people by honest methods.”[1] Walgreens quickly became a mainstay of American communities: a place that offered more than just prescriptions – it also provided familiarity and trust. Over the decades, Walgreens grew into one of the largest drugstore chains in America, all while still maintaining its founders’ commitment to community and care. Over the years, however, that legacy began to unravel; Walgreens’ valuation plummeted from a vast $100 billion to just under $10 billion, and its mission began to be buried underneath the chaotic disruptions of modern healthcare markets.[2] A company that began as a civic-minded pharmacy developed into a company driven primarily by shareholder interest and quarterly returns. The root of the problem was not just market failure; rather, it was a failure to prioritize people over profits.

The acquisition of Walgreens is the epitome of a broader and more concerning issue: the growing prevalence of the private equity firms acquiring healthcare-related companies.[3] From nursing homes and hospitals, these private equity firms are slowly infiltrating essential healthcare infrastructure, gaining increased control. Oftentimes, private equity firms operate on a short-term basis, aiming to flip companies within a five-to-eight-year period to turn a profit.[4] A traditional strategy involves cost-cutting, layoffs, store closures, and reduced services; a business model that is simply incompatible with the ethical obligations of the healthcare sector.

In the case of Walgreens, Sycamore has a long history of acquiring struggling retail businesses, such as Staples and Nine West, and implementing aggressive restructuring.[5] While this systematic practice may be effective for office supplies and fashion chains, there are profound ethical implications when applying this strategy to a company that dispenses life-saving medications and provides community health services. The “Preferential Option for the Poor” is a Catholic Social Teaching principle that demands prioritizing the needs of the vulnerable members of society in all economic decision.[6] Yet the Walgreens’ store closures that have accompanied the recent acquisition, are expected to disproportionately affect rural and low-income communities, creating “pharmacy deserts.”[7] These communities rely on Walgreens not just for medication, but also for minor health services, and even food necessities. To strip these communities of access to care in the name of profitability is to commodify human need.

While the shift to private ownership raises valid concerns, it also presents a unique opportunity for Walgreens to redefine its mission in ways that better serve the common good. Transitioning from a public to private firm creates freedom from the stress of meeting quarterly earnings expectations and making decisions that are solely in the best interest of the shareholder. Sycamore now has the opportunity to restructure and regrow Walgreens with compassion at the forefront, which will in turn help rebuild and maintain Mr. Walgreen’s original mission. If restructuring is approached with moral-clarity, Walgreens could be built into a more just and sustainable business model that aligns economic success with human dignity.

Ultimately, the Walgreens acquisition serves as a reminder that businesses have a responsibility to uphold human dignity within the marketplace. Commerce should not and cannot be separated from ethics. Healthcare companies, and other companies that are created to serve others, must recognize that their influence spans beyond that of profit margins and shareholder benefits. A just economic system is not defined only by efficiency, but by its ability to foster a society in which every person is valued, protected, and able to flourish. When a business fails to respect that calling, it ceases to serve the common good and instead becomes an instrument of exclusion and harm. The restoration of Walgreens must begin with a renewed commitment to human dignity in every transaction, policy, and decision it makes moving forward.

[1] Charles R. Walgreen, Dep’t of Labor: Hall of Honor, https://www.dol.gov/general/aboutdol/hallofhonor/2006_walgreen (last visited May 10, 2025).

[2] Danielle Kaye, Walgreens to Be Bought by Private Equity Firm in $100 Billion Deal, N.Y. Times (Mar. 6, 2025), https://www.nytimes.com/2025/03/06/business/walgreens-buyout.html#:~:text=Its%20market%20value%2C%20which%20peaked,have%20been%20clear%20for%20months.

[3] Judith Garber, The rising danger of private equity in healthcare, Lown Institute: Accountability (Jan. 23, 2024), https://lowninstitute.org/the-rising-danger-of-private-equity-in-healthcare/#:~:text=Private%20equity%20(PE)%20acquisitions%20in,what’s%20in%20the%20latest%20research.

[4] Id.

[5] Sabrina Valle & Abigail Summerville, Walgreens to be taken private by Sycamore in $10 billion deal, Reuters (Mar. 6, 2025), https://www.reuters.com/markets/deals/walgreens-be-taken-private-by-sycamore-partners-10-billion-deal-wsj-reports-2025-03-06/.

[6] Option for the Poor and Vulnerable, U.S. Conf. of Cath. Bishops, https://www.usccb.org/beliefs-and-teachings/what-we-believe/catholic-social-teaching/option-for-the-poor-and-vulnerable (last visited May 10, 2025).

[7] Allison Bell, Proposed Walgreens deal could create more pharmacy deserts Sen. Warren warns, Benefits Pro: News, (Apr. 30, 2025), https://www.benefitspro.com/2025/04/30/proposed-walgreens-deal-could-create-more-pharmacy-deserts-sen-warren-warns/.