The company would initially be taken private as a whole, but Sycamore ultimately plans to make Walgreens, UK chemist and retailer Boots, and specialty pharmacy business Shield Health Solutions into independent units with distinct capital structures, according to the report.
Sycamore’s potential acquisition of Walgreens was first reported in December. Acquisition talks have been complicated by the volatility in Walgreens’ share price and the deal could still collapse in the coming weeks, people close to the discussion told The Financial Times.
On Jan. 27, CNBC’s David Faber said his sources told him the deal was “mostly dead,” but on Feb. 18, he upgraded the deal to “alive.”
Walgreens announced Jan. 30 that it was suspending its quarterly cash dividend for the first time since 1932 as it reassesses capital allocation amid a long-term turnaround effort. The company posted a $245 million operating loss in the first quarter of fiscal 2025 — the three months ended Nov. 30 — a substantial drop from the $39 million operating loss recorded in the same quarter in FY 2024.
Walgreens enlisted advisers Perella Weinberg Partners and AlixPartners to assist with operations and balance sheet of the company as the company continues to face financial pressures. VillageMD, the healthcare clinic backed by Walgreens, is also exploring restructuring with the help of consulting firms Evercore and Alvarez & Marsal.
