Walgreens is being eyed by investors who’d like to take it private, report says

Charisse Jones


Published 5: 06 PM EST Nov 5, 2019

Walgreens Boots Alliance Inc., 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 drug store chain has spoken with some private equity firms and is receiving 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 had dropped 19% by the end of October. The flagging stock price is likely what 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 that it would shutter 150 of the clinics it runs by the end of this year. Previously, the retailer said it would be shutting 200 stores.

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Still, the company, the nation’s largest drugstore chain by total locations, will continue to have nearly 9,400 locations in the U.S. And Walgreens has also been taking steps to innovate its business.

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

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Contributing: AP

Follow USA TODAY reporter Charisse Jones on Twitter @charissejones

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