Sycamore Partners aims to double Walgreens' profitability to $4bn following its $10bn take-private acquisition, targeting an adjusted EBITDA increase from approximately $2bn in 2024.

Sycamore has implemented cost-cutting measures including workforce adjustments while seeking revenue growth through product expansion and improved pricing. The turnaround strategy benefits from rising prescription drug reimbursement rates, with previously unprofitable products now contributing positively.

Walgreens is expected to deliver $2.5bn adjusted EBITDA this year on $120bn revenue, signaling early progress. Sycamore may exit once targets are met or return capital via dividends, ending a period of public company underperformance amid competition from online retailers and large-format chains.