Walgreens Boots Alliance Inc (NASDAQ:WBA, ETR:W8A) shares soared over 20% on Tuesday following reports that private equity firm Sycamore Partners is in talks to take the struggling drugstore chain private.
The Wall Street Journal reported that Sycamore, known for acquiring troubled retailers like Staples and Belk, is reportedly exploring a deal that could involve breaking up Walgreens.
The rally marked the stock's biggest single-day gain in decades.
Despite the surge, Walgreens has faced a turbulent year, with shares down nearly 70% in 2024, and the company burdened by a $3 billion fourth-quarter loss tied to opioid liabilities and a write-down of a Chinese investment. It also plans to close 1,200 stores over three years.
Walgreens and Sycamore declined to comment on the potential acquisition.