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Walgreens Stock Jumps on Report of Possible Sycamore Deal
Key Takeaways
Walgreens Boots Alliance ( WBA ) shares jumped Tuesday following a report the pharmacy's possible deal to sell itself to private equity firm Sycamore Partners may be back on the table.
CNBC's David Faber reportedly said on the network Tuesday morning that the deal is "alive," after being considered "mostly dead" a few weeks ago.
The talks between the pharmacy chain and Sycamore were first reported in December, with The Wall Street Journal saying Sycamore would likely sell off pieces of the company's business. In October, Walgreens announced a plan to shutter some 1,200 "underperforming" stores, including 500 in fiscal 2025.
Walgreens Suspended Dividend in January
Late last month, the retailer said it was temporarily suspending its quarterly dividend to conserve cash as it looked to turn around its business and refinance some of its debt . Bloomberg also reported last month that Sycamore had been discussing debt financing with other firms to fund the deal.
Walgreens and Sycamore did not immediately respond to requests for comment.
Walgreens shares were up more than 12% in afternoon trading Tuesday, but have lost about half their value over the last 12 months.
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