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BumRushDaShow

(148,663 posts)
Wed Dec 11, 2024, 06:55 AM Dec 2024

Walgreens considering selling company to private equity firm, according to published report

Source: Chicago Tribune

UPDATED: December 10, 2024 at 6:51 PM CST


Walgreens Boots Alliance is considering selling the company to a private equity firm – a move that would take the publicly traded company private, according to a Wall Street Journal report.

Deerfield-based Walgreens has been in discussions with Sycamore Partners over a deal that could be completed early next year, the Journal wrote, citing unnamed “people familiar with the matter.”

A Walgreens spokesperson declined to comment on the report Tuesday, telling the Tribune, “we don’t comment on rumors or speculation about our business.” A spokesperson for Sycamore also declined to comment. Walgreens’ stock shot up 21% on the news early Tuesday afternoon.

New York-based Sycamore specializes in retail and consumer investment, and would likely sell off pieces of the business or work with partners, the Journal reported. The report follows years of struggles for the massive retail pharmacy chain, some of which are related to industrywide challenges over reimbursements for medications, while others stem from past moves made by Walgreens.

Read more: https://www.chicagotribune.com/2024/12/10/walgreens-private-equity-firm/

21 replies = new reply since forum marked as read
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Walgreens considering selling company to private equity firm, according to published report (Original Post) BumRushDaShow Dec 2024 OP
darn. We lost our local pharmacy last spring and I had to move my perscriptions to Walgreens which riversedge Dec 2024 #1
How far are you DownriverDem Dec 2024 #5
I'm going to check out Mark Cuban's Cost Plus company. Joinfortmill Dec 2024 #9
Private equity firms are destroying so many companies. Greed, greed, greed... hlthe2b Dec 2024 #2
The stomach-churning stench... GiqueCee Dec 2024 #10
Private Equity is so profitable. Often they are collections of brands. bucolic_frolic Dec 2024 #3
Over the next four years, we will see the gutting of the US for billionaire profits. Lonestarblue Dec 2024 #4
Get ready DownriverDem Dec 2024 #6
I will stop getting prescriptions filled there...which is about all the business they seem to do lately. Joinfortmill Dec 2024 #7
And to think I've asked "can Walgreens get any worse." Vinca Dec 2024 #8
You beat me to it. (nt) Paladin Dec 2024 #11
Guess they want to go the route of Bed, Bath, and Beyond, K-Mart, and Hancock Fabrics, to sinkingfeeling Dec 2024 #12
Just for raising that option, I'm done with them RainCaster Dec 2024 #13
I often wonder if the Mafia owns drug stores JohnnyRingo Dec 2024 #14
And the billionaires will take over . . . AverageOldGuy Dec 2024 #15
Doesn't private equity Linda ladeewolf Dec 2024 #16
They play accounting games to loot the companies load them up with debt harun Dec 2024 #17
That's what the one that owned the Bi-Lo grocery chain did and the chain went out of business. cstanleytech Dec 2024 #20
Yes, private equity firms coprolite Dec 2024 #21
Private equity and LBOs are what made Mitt Romney a multi-millionaire FakeNoose Dec 2024 #18
Never a good sign. cstanleytech Dec 2024 #19

riversedge

(74,471 posts)
1. darn. We lost our local pharmacy last spring and I had to move my perscriptions to Walgreens which
Wed Dec 11, 2024, 07:26 AM
Dec 2024

is about a 30 minute drive in a larger city. Now, I wonder if it will be there next spring.

DownriverDem

(6,760 posts)
5. How far are you
Wed Dec 11, 2024, 09:01 AM
Dec 2024

from doctors and the hospital? People can live where they want, but I remind folks about services they might need. I know folks who have to drive a long way for medical services now that they are older.

hlthe2b

(108,339 posts)
2. Private equity firms are destroying so many companies. Greed, greed, greed...
Wed Dec 11, 2024, 07:34 AM
Dec 2024

After Walgreens has largely become the most predominant pharmacy option for so much of the country, PE will start closing them left and right.

GiqueCee

(1,906 posts)
10. The stomach-churning stench...
Wed Dec 11, 2024, 09:34 AM
Dec 2024

... of private equity is permeating the entire country. They patterned their business model on the Mafia's. "Nice little business ya got dere. Be a shame if sumpthin' happened to it. So we'll be your partners from now on. Or at least until we finish strippin' it down to da plumbing. Then we'll sell da copper, and burn what's left to da ground for de insurance."

bucolic_frolic

(49,158 posts)
3. Private Equity is so profitable. Often they are collections of brands.
Wed Dec 11, 2024, 07:50 AM
Dec 2024

Here's one. https://en.wikipedia.org/wiki/Authentic_Brands_Group

Not singling them out for any reason, there are many others. They strip out the good part and monetize the top brands.

Follow Rockport's trajectory:

https://en.wikipedia.org/wiki/Rockport_(company)

Founded by an entrepreneur, then sold to Reebok. Reebok sold to Adidas. Sold to Berkshire and New Balance. Berkshire sold it to Crescent Capital. Rockport declared bankruptcy. Charlesbank bought it out of bankruptcy, then closed all their retail outlets. Bankruptcy again, then sold to Authentic Brands.

Not a knock on any of these owners and former owners, the company still makes good products, even if their shoes can no longer be re-soled. But all these changes in ownership cost money. The lawyers, accountants, and MBA's have to be paid. Some form of streamlining is often involved in M&A - downsizings, layoffs, overseas factories, quality.

Lonestarblue

(12,388 posts)
4. Over the next four years, we will see the gutting of the US for billionaire profits.
Wed Dec 11, 2024, 08:14 AM
Dec 2024

It isn’t just rights that we stand to lose. It’s jobs and local access to necessary services. The push will be to move even more things online because physical stores are expensive and fewer employees will be needed.

We’ll have more healthcare deserts as private equity takes over most hospitals and medical practices to squeeze every penny from them and then close what’s left.

DownriverDem

(6,760 posts)
6. Get ready
Wed Dec 11, 2024, 09:03 AM
Dec 2024

After trump and the MAGAs screw us, folks will be whining and complaining. My favorite response is it's too late!

Joinfortmill

(17,517 posts)
7. I will stop getting prescriptions filled there...which is about all the business they seem to do lately.
Wed Dec 11, 2024, 09:19 AM
Dec 2024

Store is always empty except for filling prescriptions. And I live in a beach town, so it's not for lack of potential customers.

sinkingfeeling

(54,461 posts)
12. Guess they want to go the route of Bed, Bath, and Beyond, K-Mart, and Hancock Fabrics, to
Wed Dec 11, 2024, 09:54 AM
Dec 2024

name a few.

RainCaster

(12,284 posts)
13. Just for raising that option, I'm done with them
Wed Dec 11, 2024, 10:17 AM
Dec 2024

For simply considering the private equity option, instead of trying to be competitive on pricing or customer service or selection... The consumer was never part of the equation to Walgreens. So for that reason, they have lost me forever.

JohnnyRingo

(19,723 posts)
14. I often wonder if the Mafia owns drug stores
Wed Dec 11, 2024, 10:32 AM
Dec 2024

A "legitimate business" after decades in sanitation services.

They certainly act like it.

AverageOldGuy

(2,493 posts)
15. And the billionaires will take over . . .
Wed Dec 11, 2024, 10:38 AM
Dec 2024

. . . and we know what that means:
-- Close a lot of stores
-- Increase prices; reduce stock; reduce staff, reduce services
-- Billionaires get more money, we peasants get less service but pay more

I won't say anything about shooting a CEO because we aren't supposed to talk like that - - - we are just supposed to roll over.

Linda ladeewolf

(774 posts)
16. Doesn't private equity
Wed Dec 11, 2024, 11:20 AM
Dec 2024

Own a lot of the housing and everything else? It seems like class warfare is on. It’s not really the way they say it is. It’s a mix of racism and classism. The wealthy use race to separate us in the same ways they always have and we have let them. They are using it on immigrants now too. It’s always been the wealthy trying to keep the rest of us poor. Now they want what the middle class has. The middle class can’t see that. They blame the poor, when it’s always been the rich. It’s that pile of cookies. The rich want the whole pile of cookies and all the rest of us can share the crumbs now. That’s where this is all heading with trump. The middle class is endangering themselves by not supporting the poor and the immigrants. They’re next.

harun

(11,365 posts)
17. They play accounting games to loot the companies load them up with debt
Wed Dec 11, 2024, 01:00 PM
Dec 2024

then sometimes declare bankruptcy or sell them.

?si=QFomuZerCcY9rKgl

cstanleytech

(27,471 posts)
20. That's what the one that owned the Bi-Lo grocery chain did and the chain went out of business.
Wed Dec 11, 2024, 01:26 PM
Dec 2024

coprolite

(360 posts)
21. Yes, private equity firms
Wed Dec 11, 2024, 01:30 PM
Dec 2024

are buying up single family homes making it unaffordable to rent and buy for our younger generation .

They are also buying up anesthesiology firms that stick you with out-of-network fees and high cost for services.

FakeNoose

(36,837 posts)
18. Private equity and LBOs are what made Mitt Romney a multi-millionaire
Wed Dec 11, 2024, 01:20 PM
Dec 2024

And he's one of the wealthiest people in Congress.

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