According to reports, Walgreens is aiming to go private through a deal with Sycamore Partners, which caused the stock to rise by almost 20% on Tuesday.
The private equity group and the struggling pharmacy behemoth are reportedly negotiating a merger that might be finalized early next year, according to the Wall Street Journal. The Walgreens Boots Alliance (WBA) stated that it does not respond to rumors or conjecture.
The specifics of the possible agreement are still being worked out. The Journal stated that because Sycamore concentrates on smaller transactions, it “would likely sell off pieces” of Walgreens to make the acquisition more financially feasible.
Walgreens, like competitors CVS and Rite Aid, has experienced hundreds of store closures and decreased prescription reimbursements in recent years, which has caused its worth to drop to about $8 billion.
