People walk past a Walgreens on November 3, 2024 in Brookline, Massachusetts.
Danielle Defries | CNBC
shares Walgreens jumped nearly 25% on Tuesday a report The company is in talks to sell itself to private equity firm Sycamore Partners.
Walgreens and Sycamore are discussing a deal that could be completed early next year, the Wall Street Journal reported, citing people familiar with the matter.
A Walgreens spokesperson declined to comment on the reported conversations.
The report comes during a rough period for the retail pharmacy giant. The company's stock fell more than 60% over the year before rising on Tuesday.
Walgreens – Pressured due to moving from Covid pandemicA Driving shakepressure on pharmacy reimbursements and its wavering push into health care — have dampened Wall Street's earnings forecasts for the year Two quarters in a row.
In October, Walgreens said it plans to close nearly 1,200 of its pharmacies over the next three years, which includes 500 in fiscal 2025 alone. Walgreens has about 8,700 locations in the United States, a quarter of which it says are unprofitable. The company also pared back its efforts in primary care by reducing its stake in primary care provider VillageMD.
Walgreens has reportedly been viewed as a potential private equity target in the past.
In 2019, private equity firm KKR posted profits of approx A purchase deal worth $70 billion The offer to the company, the Financial Times and Bloomberg reported at the time.
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