Walgreens may get scooped up in the largest private equity deal in history, report says

[nitpicker]

https://www.cnn.com/2019/11/11/investing/walgreens-kkr-buyout-report/index.html

Walgreens may get scooped up in the largest private equity deal in history, report says

By Paul R. La Monica, CNN Business

Updated 1:04 PM ET, Mon November 11, 2019

New York (CNN Business) — Walgreens reportedly wants to go private, and KKR is said to be interested in buying it. The acquisition would almost certainly be the largest private takeover in history.

Shares of Walgreens Boots Alliance (WBA) surged 6% in early trading Monday on the report. According to Bloomberg, KKR has approached Walgreens about a deal. The buyout firm KKR is one of the world's largest private equity firms, and its leveraged buyout of RJR Nabisco was cataloged in the book, "Barbarians at the Gate."

Walgreens currently is valued at more than $55 billion. Any deal would probably be done at a premium to that price — and also include the assumption of the $16.8 billion in debt the retail and pharmacy giant has on its balance sheet.

According to merger research firm Dealogic, the largest private takeover ever was the $44 billion acquisition (including debt) of Texas utility company TXU by KKR (KKR), fellow private equity firm TPG and Goldman Sachs (GS) in 2007. TXU went bankrupt in 2014 but has since emerged from Chapter 11 protection and is now a part of the power company known as Vistra Energy (VST).

Walgreens had no comment for CNN Business about the Bloomberg report or a Reuters report last week that said it is looking to go private. KKR was not immediately available for comment.
(snip)

[Sherman A1]

1. Oh, goodie......

These deals always work out so very well for the Retailers.........

[Auggie]

3. Big benefits for consumers too!!!

[get the red out]

2. I hate this shit

Bigger is not better.

[Freddie]

4. Walgreens in my town

Which has 2 Rite Aids, a huge CVS, and pharmacies in the Giant, Walmart and Target. About 5 years ago they decided we need a Walgreens too. So the company bought a prime site at a major intersection and built a beautiful store...and then did nothing. *After* they finished building it, they decided not to open a Walgreens here after all. Brilliant. So we got a big empty store at a prime intersection for a couple years. Finally a furniture chain bought it and it’s Just Furniture in an obviously Walgreens building.