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US-based pharmacy chain Walgreens Boots Alliance is in talks over a sale to a private equity firm, in a potential deal that reflects the mounting distress facing the sector.
The Illinois-based group had held discussions with Sycamore Partners, an investment group known for targeting troubled retailers, said two people familiar with the matter.
Walgreens, which owns the UK’s Boots chain, had a market capitalisation of more than $50bn at the end of 2019, but its share price has fallen more than 80 per cent since, cutting its valuation to about $8bn. The company’s share price rose more than 20 per cent on Tuesday after The Wall Street Journal initially reported on the sale talks.
Investors have punished US pharmacy retailers including Walgreens, CVS and Rite Aid after years of overexpansion and pressure from retailers such as Walmart, Target and Amazon.
Walgreens and Sycamore declined to comment.
This is a developing story