That sucking sound? That’s the sound of assets and capital rapidly leaving the organization.
When I see a venture capital company take a company like Walgreens private I can’t help but wonder if Walgreens will be raped and pillaged, stores will be closed, real estate will get sold off, and the profits will be squeezed out and eventually the entire thing will be gone.
Walgreens is leaving the ghetto.
Private equity will not keep stores where violence, theft or liability is a problem - or stores that simply lose money - and the overlap of the two categories is nearly 100%. They will all be closed within months.
Give it 12 months for politicians in Chicago, Oakland, Los Angeles, etc... to start complaining about “pharmacy deserts.”
Pharmacy chains have been dropping like flies. Walgreen bought them all up. Since Grocery stores and mass merchandisers all stated adding pharmacies the stand alone pharmacies have been failing, Most likely Walgreens are looking at bankruptcy and this was a way out for the current management
The company on Thursday said it inked a deal with private equity firm Sycamore Partners that will take it off the public market for an equity value of around $10 billion.
The major value of public trading is liquidity. Subject to rumors and manipulation. Maybe this directs to more long term investment and stability?
not sure the process to enter into this type of investment but did here about one Christian Invesment yesterday that sounded interesting.
https://www.faithdriveninvestor.org/private-equity
i wish Sycamore Partners could luck if their intent is keep Walgreens/Boots as a going concern ...
at a minimum, they’ll have to do the following:
1. close all grossly unprofitable stores ASAP
2. reduce prices of retail merchandise to match the prices of walmart ... their current full retail prices are ridiculous
3. improve pharmacy service to match kroger ... [decades ago, i bailed on having anything to do with walgreens pharmacy services: ridiculously expensive, inaccurate, unhelpful and surly personnel ... my own personal motto for walgreens is: “If we can F it up, we will!”
Calling Gordon Grekko, your chopping block is now available
“a partner with a strong track record of successful retail turnarounds”
Retail?
Walgreen’s is an overpriced Dollar Store that sells drugs in the back. That bricks-and-mortar model doesn’t work anymore in that segment. Most “Seniors” today are at least a bit tech savvy, so online is the way to go. Plans offer e-delivery of 90 supplies. Medicaid Mills don’t pay enough to stay in business. Poor folks paying cash don’t buy enough, cuz they can’t afford it.
Most locations are probably leased.
There really aren’t any assets to speak of.
I don’t see the value play.
Probably why I don’t work for Sycamore.
My daughter worked at Walgreens a few years back when the stock price was near 70 and a manager she despised used to brag about her 401K “all in Walgreens stock!” which Shaniqua insisted would soon be over 100. I think she might be cutting down on her hair weave expenses around now.
Walgreens has the worst customer service treatment in the Country and highest prices.
Walgreens never recovered from their fast expansion on every corner and the Theranos deal. Both failing strategies.
Walgreens is where we have our prescriptions filled since WalMart stopped doing so.. Same distance , Walgreens is across the street from WalMart .
I’ll tell you the problem with Walgreens: Every item is at least double in price what it is elsewhere, and sometimes triple.
CVS gained great adantage over Walgreens with its virtical integration of the top PBM (prescription benefit manager - CVS Caremark), medical care insurer AETNA, and the CVS retail prescription drug business.
The 80’s are back!