As per a media report in December, Walgreens Boots Alliance Inc (NASDAQ:WBA) suggested the company is in talks to be acquired by Sycamore Partners.
Walgreens's market value has shrunk from over $100 billion a decade ago to around $8.4 billion, as per data from Benzinga Pro.
Earlier on Tuesday, citing CNBC, the Bloomberg report noted that the take-private deal with the private equity firm is still possible.
Walgreens Boots Alliance' deal appeared "mostly dead a couple of weeks ago," CNBC's David Faber said Tuesday. He said he was now upgrading the deal to "alive."
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The Wall Street report in December, citing people familiar with the matter, said Sycamore would likely sell certain parts of the business or bring in partners. The people also said the deal could be completed in early 2025.
Recently, the drugstore chain announced its board is suspending its cash dividend as management continues to evaluate its capital allocation policy as part of a longer-term turnaround strategy.
In January, Walgreens reported first-quarter sales of $39.46 billion, up 7.5% year over year (+6.9% on constant currency), beating the consensus of $37.28 billion, reflecting sales growth across all segments.
Walgreens maintained fiscal 2025 adjusted EPS guidance of $1.40 – $1.80 versus the consensus of $1.52.
The company expects growth in U.S. Healthcare and International to be offset by pressure in U.S. Retail Pharmacy, largely driven by weaker retail front-end performance.
Earlier this year, the U.S. Department of Justice filed a civil complaint against Walgreens and its subsidiaries, alleging widespread violations of the Controlled Substances Act (CSA) and False Claims Act (FCA).
The complaint claims that Walgreens dispensed millions of unlawful prescriptions, including opioids, and sought reimbursements from federal health care programs for prescriptions that were improperly filled.
Price Action: WBA stock is up 12.1% at $10.88 at last check Tuesday.
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