Shares of Walgreens Boots Alliance (WBA 1.72%) rose on Thursday, up as much as 7.3% before settling into a 2.2% gain by 3:30 p.m. ET. That gain was still notable, since the broader markets were down significantly on the day.
News reports circulated with further details on a potential buyout of the company by private equity firm Sycamore Partners, which has been in talks to buy the troubled pharmacy since late 2024.
According to people familiar with the matter and reported in the Financial Times, Sycamore Partners is proposing to split Walgreens into three separate companies: the main Walgreens pharmacy in the U.S., the Boots pharmacy and chemist in the U.K., and specialty pharmaceutical unit Shields Health Solutions. Moreover, the sources said Sycamore appeared to have the necessary financing lined up.
Walgreens had spiked on rumors of a buyout in December, but shares have since retreated back to where they were prior to that news due to a lack of follow-through, compounded by recent market volatility. Usually, buyouts are made at a decent premium to the existing price of a stock, so the new details on Sycamore's plans today appear to have sparked a near-term rally.
It should also be noted the Financial Times piece said that talks could still fall apart, and it's usually not a great strategy to bet on a buyout that hasn't yet been announced. Therefore, interested investors should only get involved if one believes Walgreens' earnings declines may be stabilizing, and if you believe in the turnaround plan in progress under new CEO Tim Wentworth, who took over in late 2023.
免责声明：投资有风险，本文并非投资建议，以上内容不应被视为任何金融产品的购买或出售要约、建议或邀请，作者或其他用户的任何相关讨论、评论或帖子也不应被视为此类内容。本文仅供一般参考，不考虑您的个人投资目标、财务状况或需求。TTM对信息的准确性和完整性不承担任何责任或保证，投资者应自行研究并在投资前寻求专业建议。