See what is happening on foxbusiness.com.
Drugstore Walgreens boots alliance On Thursday announced that it would go private.
The struggling company entered an agreement with a private equity firm, a price of $ 10 billion. Sycamore will pay $ 11.45 per share, a premium of 8% for the closing price of $ 10.60 on Thursday. The company’s shares increased by about 6% in extended trading.
Walgreens shareholders can get additional $ 3 cash from the future muggle of the company’s loan and also the equity interests in Villagmad.
If privately owned, the volgant can cut off aggressively.
Walgreens Boots Alliance entered an agreement with private equity firm Sycamore Partners, which was priced at $ 10 billion. (Leonardo Munoz / ViewPress / Getty Images)
Company Market price A decade ago, more than just $ 100 billion from $ 100 billion has shrunk more than $ 9 billion as the margin fell on drug prices and consumers transferred cheap rivals to Amazon and Walmart to fill their prescriptions and buy toilets.
And when rivals diversity in insurance or prescription management, Valgrace invested billions to buy other pharmacy chains despite a trend away from in-store purchases.
As a result, second largest US pharmacy Chen’s loans and lease obligations have made a balloon of about 30 billion dollars.
Walgreens shareholders may get an additional $ 3 from the company’s loan and future mates of equity interests in Vilgamd. (Through Luke Shrants / Bloomberg Getty Image / Getty Image)
“As a private company, the WBA (Walgreens Boots Alliance) will have more flexibility to make major changes in the business, in our view, and aggressively cut costs will be made to try to deal with recent challenges with pharmacy operating margin and will be cut aggressively. Retail products fall in sales From an increase in online competition, “CFRA Research analyst Paige Mayor told Fox Business in December.
Why neighborhood pharmacies are closed
In October, the company, which is struggling with rivals such as Amazon, announced a plan to close at least 1,200 stores over the next three years. This step is part of its effort to close the “critical” number of underperforming locations across the US in response to these challenges.
In October, the company, which is struggling with rivals such as Amazon, announced a plan to close at least 1,200 stores over the next three years. (Istock / istock)
Sycamore Partners, a private equity firm who specializes in retail and consumer investment, has a track record of getting upset retail vendors for profit; Among them were brands such as Staple, Talbots and Nine West.
Get Fox Business when you click here
Fox Business’ Denila Genovens and Reuters contributed to this report.
