Boots Chairman to Increase Stake in Walgreens Boots Alliance Amid US$10 Billion Takeover
Stefan Pessina, Chairman of Boots, is set to increase his stake in Walgreens Boots Alliance (WBA) to nearly 50% as part of a proposed US$10 billion takeover of the company by private equity firm Sycamore Partners. The post Boots Chairman to Increase Stake in Walgreens Boots Alliance Amid US$10 Billion Takeover appeared first on Global Cosmetics News.
THE WHAT? Stefan Pessina, Chairman of Boots, is set to increase his stake in Walgreens Boots Alliance (WBA) to nearly 50% as part of a proposed US$10 billion takeover of the company by private equity firm Sycamore Partners.
THE DETAILS Pessina previously held a 17% stake in WBA. The takeover, announced in March, is still subject to final structuring, but Sycamore is expected to hold a majority share. The transaction follows a steep decline in WBA’s market value, which has dropped by 90% since Walgreens and Alliance Boots merged in 2014.
WBA has faced ongoing challenges, including falling sales, store closures at Boots, and mounting debt. The company has also struggled to adapt to increasing competition from online pharmacy and retail operators. While Sycamore has stated it will retain core brands including Walgreens and Boots, the future direction of the business is still being shaped by advisors.
THE WHY? The takeover comes after a prolonged period of underperformance for WBA and reflects a wider trend of private equity interest in struggling but established consumer health and personal care businesses. Boots’ role in the new ownership structure has not yet been clarified.
The post Boots Chairman to Increase Stake in Walgreens Boots Alliance Amid US$10 Billion Takeover appeared first on Global Cosmetics News.
