viewWalgreens Boots Alliance Inc

Walgreens Boots considers going private: media reports

Reuters said there have been preliminary talks with private equity firms to organise what would be the biggest ever leveraged buyout

Walgreens Boots Alliance sign
The company has a market value of over US$55bn

Walgreens Boots Alliance Inc (NASDAQ:WBA) shares were higher in pre-market trading after Reuters reported the group is considering going private.

The company, which has a market value of over US$55bn, owns the second-largest pharmacy stores chain in the US and the largest in the UK.

READ: Walgreens and Rite Aid join CVS Health in discontinuing sales of popular heartburn drug Zantac

In an exclusive report, the newswire said there have been preliminary talks with private equity firms to organise what would be the biggest-ever leveraged buyout, with investment bank Evercore Partners asked to assess whether a transaction can be put together.

Such a move would need to involve several private equity firms, at a time when there is less enthusiasm for the so-called club deals following the 2008 financial crisis.

Chief executive Stefano Pessina, the company’s largest shareholder with a 16% stake, may help finance the buyout, while the board has been considering selling assets – such as the 27% stake in drug wholesaler AmerisourceBergen Corp. (NYSE:ABC) – to raise funds.

In full-year results published last month, Walgreen reported a 21% plunge in net earnings to US$4bn and predicted “roughly” flat growth in 2020, due to a challenging operating environment.

Walgreen shares were up 1.8% to US$62.10 in pre-market trading on Wednesday.

Quick facts: Walgreens Boots Alliance Inc

Price: 54.41 USD

Market: NASDAQ
Market Cap: $48.2 billion

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events


The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...



Full interview: Lexaria Bioscience and Cannadips CEO’s discuss key point of...

Lexaria BioScience (OTC: LXRP-CSE: LXX) CEO Chris Bunka and Case Mandel, CEO of Cannadips joined Steve Darling from Proactive Vancouver on Skype with news the company has signed a licensing deal for their DehydraTech technology with Cannadips from Humboldt, California. Bunka telling Proactive...

5 hours, 22 minutes ago

2 min read