Walgreens Boots Alliance (WBA, Financials) will be taken private by private equity firm Sycamore Partners in a $10 billion deal, ending nearly a century of public trading for the second-largest U.S. pharmacy chain, the companies said Thursday.

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Shares of Walgreens rose 7.45% to $11.39 as of 3:09 p.m. GMT-5 on Friday, reflecting investor reaction to the buyout announcement.

Reflecting Walgreens' problems with declining prescription margins, increasing debt, and competition from bigger stores, the purchase price is a 90% drop from the company's $100 billion value in 2015. As of Thursday, Walgreens' market capitalization was $9.3 billion; debt and lease liabilities came to about $30 billion.

Sycamore will pay $11.45 per share, an 8% premium over Walgreens' latest closing price of $10.60. Depending on future monetization of its interests, including its ownership in VillageMD, a primary care provider, Walgreens stockholders might also get an extra $3 per share. Extended trading after the news saw shares climb over 6%.

Sycamore has formerly bought businesses like Staples, Talbots, and Nine West and specializes on purchasing struggling stores. Focusing on returns rather than growth, its approach often consists in selling valuable assets, shutting shops, and cutting expenses.

Although Walgreens CEO Tim Wentworth said the firm was improving its turnaround plan, he stated true recovery calls for time, attention, and transformation best controlled as a private corporation.

With a 35-day go-shop period, Sycamore lets Walgreens look for other possible purchasers. Given the complexity and liability involved, analysts think a rival offer is improbable.

Once running 25 countries with 450,000 people, Walgreens has greatly shrunk its presence. With 312,000 workers, it presently manages 12,000 shops spread across eight nations. To help to stabilize its finances, the corporation keeps closing locations and running a $1 billion cost-cutting initiative.