Here are five things to know:
1. In December, the Journal reported that Walgreens could sell itself to private equity firm Sycamore Partners and become private in 2025.
2. According to the Journal, the deal was complicated by a lawsuit filed by the Justice Department on Jan. 16 alleging Walgreens and its subsidiaries unlawfully dispensed millions of prescriptions in violation of the Controlled Substances Act.
3. The news follows clinic closures across multiple states in 2025. In October, Walgreens announced in its fiscal fourth-quarter earnings report that it plans to close 1,200 locations over the next three years. This will include 500 closures in 2025, which should immediately support adjusted earnings and free cash flow.
4. Walgreens reported a $245 million operating loss in fiscal 2025’s first quarter, ending Nov. 30, far steeper than the $39 million loss recorded in the same quarter for fiscal 2024.
5. Michael Cherny, an analyst with Leerink Partners, warned clients that the deal was “always a longshot,” and investor focus should return to the company’s fundamentals, according to the Journal.
Walgreens and Sycamore did not immediately respond to messages seeking comment. Becker’s will update this story should more information become available.
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