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(Reuters) -Walgreens Boots Alliance is in talks to promote itself to non-public fairness agency Sycamore Companions, the Wall Road Journal reported on Tuesday citing folks acquainted with the matter.
The pharmacy chain and Sycamore have been discussing a deal that may very well be accomplished early subsequent yr, assuming talks don’t disintegrate, the report added.
A Walgreens spokesperson stated they “do not touch upon rumors or hypothesis about our enterprise”. Sycamore didn’t instantly reply to a Reuters request for remark.
The second largest U.S. pharmacy chain operator had beforehand tried to go personal in 2019 however was unsuccessful. On the time, it was valued at greater than $55 billion.
Since then, its pharmacy and retail companies have struggled and the corporate had introduced in October it might shut 1,200 shops over the following three years.
Walgreens’ market worth is now about $7.65 billion, with its inventory down 64% this yr. Shares of the corporate have been up almost 23% after the report.
The corporate, which additionally operates the Boots retail and pharmacy chain within the UK, had additionally seen a change in administration final yr, with Rosalind Brewer abruptly stepping down in September final yr and healthcare business veteran Tim Wentworth taking her place.
“Walgreens has explored plenty of totally different avenues over time to unlock potential worth in what has been a steadily eroding earnings story,” Leerink Companions analyst Michael Cherny wrote in a be aware.
Any deal can be an enormous chunk for Sycamore, a New York-based agency that makes a speciality of retail and shopper investments and extra just lately is best identified for smaller offers, the report stated.
Sycamore would possible unload items of the enterprise or work with companions, one of many folks stated, WSJ reported.
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