Walgreens is weighing a potential sale to a private equity firm, according to a report in The Wall Street Journal.
The pharmacy giant is in talks with Sycamore Partners for a deal that would take the company private following years of financial woes. People familiar with the conversations told the WSJ the deal could come together early next year should discussions prove fruitful.
Sycamore has been better known of late for smaller deals, the WSJ reported, and the New York-based firm focuses on investments in the retail and consumer spaces. It would likely sell of parts of Walgreens, sources told the outlet, or “work with partners.”
Walgreens operates more than 12,000 stores across the U.S., Latin America and Europe, including its Boots division.
In October, as part of its fourth-quarter earnings, Walgreens reported a $3 billion loss and plans to shutter 1,200 stores over the next three years. Five hundred of those locations will be closed in fiscal year 2025, which for Walgreens began Sept. 1.
CEO Tim Wentworth said the company is looking to invest in the stores that are turning a profit, funding the effort partially by closing the poorly performing locations.
Walgreens has faced the same headwinds that have stymied the retail pharmacy sector broadly, with slowing sales and pressures on reimbursement. It has also suffered significant losses following its acquisition of primary care provider VillageMD.
The company’s next earnings call is scheduled for Jan. 9.
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