Walgreens Stock Surges Amid Potential Sale Talks

Walgreens Stock Surges Amid Potential Sale Talks

Walgreens Boots Alliance (WBA) shares soared on Tuesday following reports that the struggling pharmacy chain is in discussions to sell itself to private equity firm Sycamore Partners.

According to The Wall Street Journal, the two parties are exploring a deal that could be finalized early next year, provided negotiations don’t fall through. If the sale proceeds, Sycamore is expected to either sell parts of the business or collaborate with other partners to restructure the company.

Store Closures Planned

In October, Walgreens announced plans to close around 1,200 stores over the next three years, including 500 closures slated for fiscal 2025.

Despite the 18% jump in its stock price to $10.48 on the news, Walgreens shares remain down 60% this year. The company’s market valuation now sits at about $8 billion, a significant drop from the over $100 billion it was worth nine years ago.