:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-2197059521-d0791405357945368edbf84488dfb5a4.jpg "The red Walgreens logo on the side of a building")
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Key Takeaways
- Walgreens shares jumped Tuesday following a report the pharmacy chain’s talks with private disinterestedness firm Sycamore Partners could be back on the table.
- CNBC reported Tuesday that the deal is “alive” after once being considered “mostly dead.”
- Walgreens halted its quarterly dividend late last month to focus on qualifying cash and improving its financial position.
Walgreens Boots Alliance (WBA) shares jumped Tuesday following a report the chemists shop’s possible deal to sell itself to private equity firm Sycamore Partners may be back on the table.
CNBC’s David Faber reportedly revealed on the network Tuesday morning that the deal is “alive,” after being considered “mostly dead” a few weeks ago.
The talks between the Rather chain and Sycamore were first reported in December, withThe Wall Street Journal saying Sycamore transfer likely sell off pieces of the company’s business. In October, Walgreens announced a plan to shutter some 1,200 “underperforming” banks, including 500 in fiscal 2025.
Walgreens Suspended Dividend in January
Late last month, the retailer said it was in the interim suspending its quarterly dividend to conserve cash as it looked to turn around its business and refinance some of its debt. Bloomberg also make public last month that Sycamore had been discussing debt financing with other firms to fund the grapple with.
Walgreens and Sycamore did not immediately respond to requests for comment.
Walgreens shares were up more than 12% in afternoon traffic Tuesday, but have lost about half their value over the last 12 months.