From Bloomberg: 2025-03-10 06:02:35

Walgreens Boots Alliance has agreed to a $23.7 billion acquisition deal with Sycamore Partners. The plan includes selling its stake in VillageMD, returning up to $3 per share to investors, totaling $2.5 billion. Sycamore Partners will finance the deal through a mix of equity and debt, potentially increasing leverage for higher returns.

S&P Global Ratings has put Walgreens’ credit rating on CreditWatch with negative implications until the financing plan is finalized. If debt-to-EBITDA exceeds 5.5x or business fundamentals weaken, a credit downgrade may occur. Investors should monitor these developments closely for potential impact on the company’s financial health.

The Walgreens-Sycamore deal signals a significant change in the retail pharmacy sector. However, the high leverage associated with the acquisition poses risks for investors. Clarity on the financing structure will be crucial for evaluating the long-term consequences of this transaction.



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