Sycamore would likely need partners to take Walgreens private, says Evercore ISI

Evercore ISI notes that The Wall Street Journal reported that Walgreens Boots Alliance (WBA) is in talks with Sycamore Partners to potentially be acquired. The WSJ report suggested Sycamore would likely sell off pieces of the business or work with partners on the deal given the size and the analyst concurs that the size of such a deal relative to Sycamore’s prior deals in retail likely points to a need for additional partners. The firm, which thinks such a transaction “would not be without risk, but would be a positive for public shareholders given ongoing business headwinds,” anticipates that a restructuring of Walgreens may likely be easier outside of public eyes. Evercore has an In Line rating and $8 price target on Walgreens shares, which are up 19% to $10.52 following the Journal’s report.