Sycamore Partners is planning a three-way split of Walgreens Boots Alliance, with the struggling pharmacy chain set to go private. According to the Financial Times, the company’s US retail pharmacy, Boots UK, and US healthcare businesses will be separated and have distinct capital structures. The move comes as Walgreens has been in talks to sell itself to private equity firm Sycamore since December.
The split is seen as a twist in the potential go-private story for Walgreens, with analyst Michael Cherny noting that it “marks another turn” in the process. However, financing issues had briefly derailed discussions with Sycamore.
Despite these challenges, the financing of the take-private deal is not expected to be an obstacle. The company’s executive chairman Stefano Pessina is set to maintain a significant stake in the business, currently holding 17%.
Source: https://www.reuters.com/business/healthcare-pharmaceuticals/sycamore-planning-three-way-split-walgreens-after-buyout-ft-reports-2025-02-27