A rumored private equity buyout of Walgreens could lead the company to be split up, according to media reports.
People familiar with the discussions told the Financial Times that a buyout from Sycamore Partners, a firm that has a historical interest in retailers, would “set the stage for a three-way break-up.” Sycamore is looking to split the three main divisions at Walgreens into their own segments, including their own capital structures.
This would create independent business for the U.S.-based Walgreens Pharmacy, United Kingdom-based Boots and Shields Health Solutions, a specialty pharmacy, according to the report.
FT’s sources said the talks still have potential to fall through, as Walgreens’ stock price has been in flux.
Reports of a potential takeover first surfaced in December, and since then have been the source of on-again, off-again speculation. In late January, reports suggested that the talks had reached a standstill, with CNBC financial reporter David Faber calling the deal “dead” on air.
However, earlier this month, he changed course and said the deal was likely alive again.
Walgreens faced financial hurdles throughout 2024, and while it did see sales increase in the first fiscal quarter of 2025, it posted a $265 million loss. The company has faced headwinds that battered retail pharmacies across the board, as well as significant losses resulting from its purchase of VillageMD.
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