Sources
Loading...
Additional media
Loading...
DeepNewz, mobile.
People-sourced. AI-powered. Unbiased News.
Walgreens Boots Alliance is reportedly in discussions to be acquired by private equity firm Sycamore Partners, a move that would take the pharmacy chain private. The potential deal has led to a surge in Walgreens' stock, which increased by as much as 6.5% following news that Sycamore is arranging over $10 billion in debt financing for the acquisition. Sycamore Partners has approached major lenders, including Bank of America, JPMorgan, and Wells Fargo, to secure funding for the transaction. Analysts suggest that if the deal goes through, it could value Walgreens at approximately $15 per share, reflecting a 6x EV/Ebitda multiple. Despite the positive market reaction, some analysts caution that going private may not resolve Walgreens' underlying business challenges.
Sycamore is known for shady dealings in credit, so don't get too excited yet Walgreens $WBA shares jump as much as 6.5% after Sky News reported that Sycamore Partners is arranging debt funding for a deal to buy the pharmacy chain, with Bank of America, JP Morgan and Wells Fargo… https://t.co/ufBTB4NgsQ
$WBA (+6% today): I posted on Tuesday my opinion that the rumored buyout of $WBA from Sycamore Partners was real and that the price could be as high as $15/share (see below). That would still be fairly cheap at 6x EV/Ebitda (~16.6% cash on cash return). Today’s news is that… https://t.co/3qypNz2kIz
SYCAMORE PARTNERS LINES UP $10B FINANCING FOR $WBA TAKEOVER – SKY Sycamore is in talks with lenders, including BofA, JPMorgan, and Wells Fargo, to finance a $10B+ deal to take Walgreens Boots Alliance private. If successful, the deal could see Boots (50,000 UK employees, ~1,900… https://t.co/7tpRYmjltp
