Walgreens Boots Alliance is understood to be considering a $70 billion deal to take the company private in what could be the biggest leveraged buyout in history.
The US company, which has had discussions with the American global investment firm KKR & Co about a possible deal, has reportedly employed the services of investment bank Evercore Partners Inc to look into potential transactions.
A source told Reuters that Walgreens had recently held preliminary talks “with some of the world’s largest private equity firms about putting together what would be the biggest ever leveraged buyout.”
A source also told Reuters that Stefano Pessina, the chief executive of Walgreens and majority shareholder, “could roll his equity into the deal to help finance the transaction.”
However, some financial commentators have speculated on whether a large leveraged buyout is possible.
Walgreens, which said in June that it will close 200 loss-making Boots stores in the UK, has net debt of around $15 billion while its fourth quarter profit fell 55 per cent to $677 million.
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