Walgreens considering selling company to private equity firm, according to published report

[BumRushDaShow]

Source: Chicago Tribune

UPDATED: December 10, 2024 at 6:51 PM CST


Walgreens Boots Alliance is considering selling the company to a private equity firm – a move that would take the publicly traded company private, according to a Wall Street Journal report.

Deerfield-based Walgreens has been in discussions with Sycamore Partners over a deal that could be completed early next year, the Journal wrote, citing unnamed “people familiar with the matter.”

A Walgreens spokesperson declined to comment on the report Tuesday, telling the Tribune, “we don’t comment on rumors or speculation about our business.” A spokesperson for Sycamore also declined to comment. Walgreens’ stock shot up 21% on the news early Tuesday afternoon.

New York-based Sycamore specializes in retail and consumer investment, and would likely sell off pieces of the business or work with partners, the Journal reported. The report follows years of struggles for the massive retail pharmacy chain, some of which are related to industrywide challenges over reimbursements for medications, while others stem from past moves made by Walgreens.

Read more: https://www.chicagotribune.com/2024/12/10/walgreens-private-equity-firm/

[riversedge]

1. darn. We lost our local pharmacy last spring and I had to move my perscriptions to Walgreens which

is about a 30 minute drive in a larger city. Now, I wonder if it will be there next spring.

[DownriverDem]

5. How far are you

from doctors and the hospital? People can live where they want, but I remind folks about services they might need. I know folks who have to drive a long way for medical services now that they are older.

[Joinfortmill]

9. I'm going to check out Mark Cuban's Cost Plus company.

[hlthe2b]

2. Private equity firms are destroying so many companies. Greed, greed, greed...

After Walgreens has largely become the most predominant pharmacy option for so much of the country, PE will start closing them left and right.

[GiqueCee]

10. The stomach-churning stench...

... of private equity is permeating the entire country. They patterned their business model on the Mafia's. "Nice little business ya got dere. Be a shame if sumpthin' happened to it. So we'll be your partners from now on. Or at least until we finish strippin' it down to da plumbing. Then we'll sell da copper, and burn what's left to da ground for de insurance."

[bucolic_frolic]

3. Private Equity is so profitable. Often they are collections of brands.

Here's one. https://en.wikipedia.org/wiki/Authentic_Brands_Group

Not singling them out for any reason, there are many others. They strip out the good part and monetize the top brands.

Follow Rockport's trajectory:

https://en.wikipedia.org/wiki/Rockport_(company)

Founded by an entrepreneur, then sold to Reebok. Reebok sold to Adidas. Sold to Berkshire and New Balance. Berkshire sold it to Crescent Capital. Rockport declared bankruptcy. Charlesbank bought it out of bankruptcy, then closed all their retail outlets. Bankruptcy again, then sold to Authentic Brands.

Not a knock on any of these owners and former owners, the company still makes good products, even if their shoes can no longer be re-soled. But all these changes in ownership cost money. The lawyers, accountants, and MBA's have to be paid. Some form of streamlining is often involved in M&A - downsizings, layoffs, overseas factories, quality.

[Lonestarblue]

4. Over the next four years, we will see the gutting of the US for billionaire profits.

It isn’t just rights that we stand to lose. It’s jobs and local access to necessary services. The push will be to move even more things online because physical stores are expensive and fewer employees will be needed.

We’ll have more healthcare deserts as private equity takes over most hospitals and medical practices to squeeze every penny from them and then close what’s left.

[DownriverDem]

6. Get ready

After trump and the MAGAs screw us, folks will be whining and complaining. My favorite response is it's too late!

[Joinfortmill]

7. I will stop getting prescriptions filled there...which is about all the business they seem to do lately.

Store is always empty except for filling prescriptions. And I live in a beach town, so it's not for lack of potential customers.

[Vinca]

8. And to think I've asked "can Walgreens get any worse."

[Paladin]

11. You beat me to it. (nt)

[sinkingfeeling]

12. Guess they want to go the route of Bed, Bath, and Beyond, K-Mart, and Hancock Fabrics, to

name a few.

[RainCaster]

13. Just for raising that option, I'm done with them

For simply considering the private equity option, instead of trying to be competitive on pricing or customer service or selection... The consumer was never part of the equation to Walgreens. So for that reason, they have lost me forever.

[JohnnyRingo]

14. I often wonder if the Mafia owns drug stores

A "legitimate business" after decades in sanitation services.

They certainly act like it.

[AverageOldGuy]

15. And the billionaires will take over . . .

. . . and we know what that means:
-- Close a lot of stores
-- Increase prices; reduce stock; reduce staff, reduce services
-- Billionaires get more money, we peasants get less service but pay more

I won't say anything about shooting a CEO because we aren't supposed to talk like that - - - we are just supposed to roll over.

[Linda ladeewolf]

16. Doesn't private equity

Own a lot of the housing and everything else? It seems like class warfare is on. It’s not really the way they say it is. It’s a mix of racism and classism. The wealthy use race to separate us in the same ways they always have and we have let them. They are using it on immigrants now too. It’s always been the wealthy trying to keep the rest of us poor. Now they want what the middle class has. The middle class can’t see that. They blame the poor, when it’s always been the rich. It’s that pile of cookies. The rich want the whole pile of cookies and all the rest of us can share the crumbs now. That’s where this is all heading with trump. The middle class is endangering themselves by not supporting the poor and the immigrants. They’re next.

[harun]

17. They play accounting games to loot the companies load them up with debt

then sometimes declare bankruptcy or sell them.

?si=QFomuZerCcY9rKgl

[cstanleytech]

20. That's what the one that owned the Bi-Lo grocery chain did and the chain went out of business.

[coprolite]

21. Yes, private equity firms

are buying up single family homes making it unaffordable to rent and buy for our younger generation .

They are also buying up anesthesiology firms that stick you with out-of-network fees and high cost for services.

[FakeNoose]

18. Private equity and LBOs are what made Mitt Romney a multi-millionaire

And he's one of the wealthiest people in Congress.

[cstanleytech]

19. Never a good sign.