Walgreens Boots Alliance is looking into whether or not it should take the company private, according to a report from Reuters. The company, which has a roughly $55 billion market cap, has been in preliminary talks with large private equity firms, the report said, noting that it would constitute the biggest leveraged buyout ever.
Reuters cited anonymous sources who said the company has retained Evercore Partners to see whether a deal would be possible, and added that several firms have been reticent, citing concerns around funding the deal and the company’s future business prospects. Among funding options also being considered is CEO and vice chairman Stefano Pessina rolling his 16% stake in the company into the transaction, as well as a potential divestment of WBA’s 27% stake in AmerisourceBergen.
Last week, alongside its full-year earnings, WBA issued a guidance for fiscal year 2020, expecting for adjusted earnings per share to be flat for the year. It also announced a partnership with Jenny Craig to begin offering a weight-loss offering in 100 stores. This builds on the company’s partnership-focused approach, which has included in-store collaborations with Birchbox and LabCorp, as well as its recently expanded pilot program with Kroger.
To read the full Reuters report, click here.