:max_bytes(150000):strip_icc()/GettyImages-2147956041-478613673c93407db317102e526ccb5e.jpg "Walgreens Stock Jumps on Report It’s Looking To Boot Boots")
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Key Takeaways
- Walgreens Boots Alliance has reportedly begun efforts to solicit potential buyers for its U.K.-based Boots pharmacy chain.
- Bloomberg said Boots could be valued at 7 billion British pounds ($8.8 billion).
- Walgreens looked to sell Boots previously, but gave up in June 2022 as volatile financial markets prevented suitors from offering enough for the unit.
Walgreens Boots Alliance (WBA) shares jumped in intraday trading Monday following a report that the big drugstore chain has been reaching out to potential buyers of its British-based Boots unit.
Bloomberg reported the company is working with advisers to solicit early stage talks to sell Boots, which could be worth 7 billion British pounds ($8.8 billion). The news site said no formal sales process has started.
Unsuccessful at Selling Boots Two Years Ago
This wouldn’t be the first time Walgreens looked to shed Boots. In June 2022, the company announced that it had had “productive discussions” with a range of prospective buyers who showed “significant interest” in purchasing the chain.
However, the company explained then that since the launch of the effort, global financial markets “suffered unexpected and dramatic change.” It said that led to financing difficulties for suitors who could not make an offer that adequately reflected the value of the business.
Walgreens Boots Alliance shares surged 5.3% to $18.10 as of 1:42 p.m. ET Monday. Still, they’re down more than 30% year-to-date, and on Friday closed at their lowest level since 1998.