Walgreens eyed by investors who’d like to take it private, report says – USA TODAY

0
4
views
Walgreens eyed by investors who'd like to take it private, report says - USA TODAY


Charisse Jones


USA TODAY

Published 6:06 PM EST Nov 5, 2019

Walgreens Boots Alliance, which has seen its stock price slip as it cuts costs and remixes its offerings, is considering going private amid interest from private equity investors, according to Reuters. 

The drugstore chain spoke with some private equity firms and receives guidance from Evercore Partners, an investment bank, Reuters reported, citing sources who did not want to be named because the preliminary talks are confidential.

Walgreens declined to comment.

The retailer’s shares inched up 2.7% to $61.30 in end-of-day trading Tuesday – a marked difference from its longer trend line this year, in which Walgreens stock dropped 19% by the end of October. The flagging stock price may have piqued the interest of private equity firms. 

In the midst of slim profits from pharmaceutical sales and rising competition from other sellers, Walgreens said last month it would shutter 150 of the clinics it runs by the end of this year. Previously, the retailer said it would shut 200 stores.

Where to shop on Black Friday: The best sales happening on Black Friday and Cyber Monday 2019

Doorbusters? Not so much: Sears and Kmart release Black Friday ads with fewer doorbusters than last year

The company, the nation’s largest drugstore chain by total locations, will still have nearly 9,400 locations in the USA, and it’s been taking steps to innovate its business.

It offers more comprehensive care in some of its clinics, will partner with weight loss company Jenny Craig to open 100 locations in Walgreens stores, and last month, it debuted on-demand delivery by drone in Christiansburg, Virginia.

Contributing: The Associated Press

Follow USA TODAY reporter Charisse Jones on Twitter @charissejones

Let’s block ads! (Why?)

Source link