Sycamore Partners is considering a three-way division of Walgreens Boots Alliance if an agreement to privatize the struggling pharmacy chain is finalized, as reported by the Financial Times on Thursday, citing sources familiar with the situation.
The three segments of Walgreens—US retail pharmacy, Boots UK, and US healthcare—are expected to be separated with their own capital structures, according to the report. Both Sycamore and Walgreens declined to comment on this matter.
Shares of the Deerfield, Illinois-based company increased by 5 percent to $11.62 in early trading.
Leerink analyst Michael Cherny stated that this report “marks another twist in the potential go-private story” for Walgreens.
Since December, Walgreens has reportedly been in discussions to sell itself to private equity firm Sycamore, but a deal has not yet been finalized.
Media reports have suggested challenges regarding financing for the buyout, with discussions between Walgreens and Sycamore briefly stalling.
However, the financing for the take-private deal is not anticipated to be a barrier, according to the FT report.
Walgreens’ executive chairman, Stefano Pessina, who holds a 17 percent stake, is expected to retain a significant portion of the company, the report added.
By Bhanvi Satija and Sriparna Roy; Editing by Tasim Zahid and Shailesh Kuber
 | Business of Fashion Fashion news, analysis and advice from the leading digital authority on the global fashion industry. |
