Boots Chairman to Improve Stake in Walgreens Boots Alliance Amid US$10 Billion Takeover

THE WHAT?  Stefan Pessina, Chairman of Boots, is about to extend his stake in Walgreens Boots Alliance (WBA) to just about 50% as a part of a proposed US$10 billion takeover of the corporate by personal fairness agency Sycamore Companions.

THE DETAILS  Pessina beforehand held a 17% stake in WBA. The takeover, introduced in March, continues to be topic to remaining structuring, however Sycamore is anticipated to carry a majority share. The transaction follows a steep decline in WBA’s market worth, which has dropped by 90% since Walgreens and Alliance Boots merged in 2014.

WBA has confronted ongoing challenges, together with falling gross sales, retailer closures at Boots, and mounting debt. The corporate has additionally struggled to adapt to rising competitors from on-line pharmacy and retail operators. Whereas Sycamore has acknowledged it’ll retain core manufacturers together with Walgreens and Boots, the long run course of the enterprise continues to be being formed by advisors.

THE WHY? The takeover comes after a protracted interval of underperformance for WBA and displays a wider development of personal fairness curiosity in struggling however established client well being and private care companies. Boots’ function within the new possession construction has not but been clarified.