Daniel DeVries | CNBC
Walgreens and Sycamore are discussing a deal that could be completed as early as next year, the Wall Street Journal reported, citing people familiar with the matter. New York-based Sycamore will likely sell off pieces of the Walgreens business or work with partners, the Journal reported.
A Walgreens spokeswoman declined to comment on the reported discussions.
The report comes amid a difficult period for the retail pharmacy giant. The company’s stock was down more than 60 percent for the year before climbing Tuesday.
Walgreens — squeezed by the move out of The covid pandemica Leadership changeThe rise in pharmacy reimbursements and its shake-up in health care — have underperformed Wall Street’s earnings expectations. Two straight quarters. Walgreens’ pharmacy business has been particularly strong. flare up Due to declining reimbursement rates for prescription drugs and a number of factors putting pressure on the store front, such as inflation and increased competition.
The company is trying to regain its footing with a new CEO, healthcare industry veteran Tim Wentworth. Since stepping into the role in October 2023, Wentworth has led Walgreens to cut costs.
In October, Walgreens said it intended to. About 1,200 of its drug stores are closed. 500 over the next three years, including in FY 2025 alone. Walgreens has about 8,700 locations in the U.S., a quarter of which it says are unprofitable. The company has also reduced its push into primary care by reducing its stake in primary care provider Village MD.
Walgreens has reportedly been eyed as a potential private equity target in the past.
In 2019, private equity firm KKR raised approx A $70 billion purchase The offer to the company, the Financial Times and Bloomberg reported at the time.