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DEERFIELD, Ill. — According to a report, Walgreens Boots Alliance is on the verge of finalizing a deal with private-equity firm Sycamore Partners to take the struggling drugstore chain private in a transaction valued at approximately $10 billion.
Negotiations are in advanced stages, with both sides looking to sign the agreement as soon as Thursday — though a last-minute hurdle could still delay or derail talks, sources told the Wall Street Journal.
The deal is expected to involve Sycamore paying between $11.30 and $11.40 per share in cash, with the potential inclusion of contingent value rights that would allow shareholders to benefit if certain financial benchmarks are met.
Sycamore would take Walgreens off the public market, leading to the company’s likely breakup. Sycamore would keep the core U.S. retail business, the Journal reported, while looking to sell or take public other parts of the company, which includes British pharmacy chain Boots, U.S. health care provider Village MD, U.S. drugstore chain Duane Reade and No7 Beauty Co.
