Walgreens Boots Alliance is in talks to sell itself to private equity firm Sycamore Partners, according to a person familiar with the matter. This comes after a sharp slump in share value, making it the latest attempt by the pharmacy chain operator to go private.
The talks are ongoing, and a potential deal is expected to be signed by early next year. If successful, it would be one of Sycamore’s biggest deals, following Walgreens’ market capitalization reaching $9 billion after a recent rally.
Walgreens has struggled with weak consumer spending due to inflation and low reimbursement rates for filing prescriptions. The company has also been looking to sell its Boots retail and pharmacy chain in the UK for several years.
In 2019, Walgreens attempted to go private but was unsuccessful. The company’s stock has fallen over 60% this year, leading analysts to predict a possible sale. Sycamore Partners is exploring a number of avenues to address Walgreens’ eroding earnings story.
Source: https://finance.yahoo.com/news/walgreens-talks-sell-itself-pe-175114482.html