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NEW YORK—According to the Financial Times, a potential buyout of Walgreens Boots Alliance by Sycamore Partners is expected to result in a three-way breakup of the struggling U.S. pharmacy chain. Executive chair Stefano Pessina will retain a significant stake in the company.
The financing for taking Walgreens private is reportedly not a significant hurdle, despite weeks of fluctuating discussions. If the deal proceeds, Sycamore plans to divide the company into three independent businesses: Walgreens’ U.S. pharmacy operations, U.K.-based Boots, and specialty pharma unit Shields Health Solutions.
Walgreens’s volatile share price has complicated negotiations. After initial reports of the deal surfaced in December, shares surged before declining again, leaving the company with a market capitalization of approximately $9.5 billion.
Once valued at over $100 billion in 2015, Walgreens has struggled against growing competition. In October, it announced plans to close 1,200 stores after posting a nearly $9 billion net loss for its 2024 fiscal year. Pessina, who owns almost 17% of the company, has been instrumental in the ongoing discussions.
Neither Sycamore Partners nor Walgreens has commented on the progress of the deal.
