The actions of Walgreens experienced an increase of 4% after learning that Sycamore Partners manages bank financing for an acquisition of US$10,000 million.
According to Sky News, the private equity firm is in talks with Bank of America, JP Morgan and Wells Fargoto arrange the debt financing necessary for the purchase of the prominent retail pharmacy chain.
If finalized, this agreement would transform Walgreens Boots Alliance from a listed company to a private one and could lead to the future sale of Boots.
The Wall Street Journal reported Tuesday that negotiations between Sycamore Partners and WBA were ongoing, which contributed to a recovery in WBA’s stock market value.
The company’s capitalization had fallen below US$8 billion in recent months before rebounding amid acquisition talks.
Pessina, who owns about a 17% stake in WBA, could consolidate his position as the largest owner of Boots, depending on the final structure of the deal with Sycamore.
This news comes after Walgreens suspended previous attempts to sell Boots, concluding that proposals, including those from Apollo Global Management, did not meet its valuation expectations.
The possible change of ownership coincides with the arrival of a new leader at Boots following the departure of its long-serving CEOSeb James, who left the company for another opportunity in the healthcare sector. Boots has a long history dating back to its founding by John Boot in 1849 as an herbal remedy shop in Nottingham.
Source: Ambito
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