Walgreens buyout talks reportedly unlikely to culminate in a deal
Walgreen’s discussions to sell itself to private-equity firm Sycamore Partners are reportedly unlikely to result in a deal, according to a Wall Street Journal report.
The report noted that CNBC’s David Faber said on air his sources informed him the prospective deal between Walgreens and New York private-equity firm Sycamore Partners is “mostly dead.”
The Wall Street Journal previously reported that Walgreens was in discussions with Sycamore to take the company private and that the deal could be completed early this year.
[Related: Walgreens reportedly in talks to sell to private equity firm Sycamore Partners]
The report said that one potential complication in the deal talks is that "Walgreens shares have whipsawed in January, soaring on better-than-expected earnings and then dropping on news of a Justice Department lawsuit about dispensing opioid drugs.”
The report went on to say that in a note to clients Michael Chery, a Leerink Partners analyst, said “the deal was always a long shot, and investor focus now should return to the company’s fundamentals.”
A Sycamore spokesperson told Drug Store News that the company has no comment on the WSJ report.
A Walgreens spokesperson told Drug Store News that the company declined to comment.
[Read more: Walgreens to close 1,200 stores over next three years]
