US: KKR makes a formal offer to buy Walgreens

Private equity firm KKR reportedly has made a formal overture to Walgreens Boots Alliance (WBA) about a leveraged buyout.

Citing unnamed sources, Bloomberg reported Monday, November 11, that KKR is readying a proposal to take WBA private. Though talks have been initiated, the companies may decide not to pursue a deal, the report noted. Bloomberg reported last week that Stefano Pessina, executive vice chairman and CEO of WBA, has been mulling a potential buyout deal with a financial adviser.

A buyout of WBA, which operates the US drugstore chains Walgreens and Duane Reade, would be the largest ever. The Deerfield, Illinois-based company has a market capitalization of more than US$56 billion and holds nearly US$17 billion in debt.

Walgreens Boots has been reviewing a potential deal with a financial adviser to take the company private amid buyout interest. Some buyout firms looked, but decided against pursuing such a big deal, reported Bloomberg.

Full Content: Bloomberg

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