© Reuters. Walgreens stock climbs (WBA) as company considers $4B sale of Shields Health – report
Walgreens Boots Alliance (NASDAQ:) saw its shares rise 2% in premarket trading Wednesday after Bloomberg News reported that the company is considering the sale of Shields Health Solutions, a specialty pharmacy company, as part of its ongoing turnaround efforts.
The potential sale is estimated to be valued at over $4 billion, the report states.
The drugstore chain is reportedly collaborating with advisers to gauge interest in Shields Health, with private equity firms and healthcare companies expected to express interest.
Facing a myriad of challenges like high debt and a difficult consumer landscape, Walgreens has seen its stock decline by over 38% in the past year.
CEO Tim Wentworth, addressing the company’s financial situation, mentioned a thorough evaluation of strategic options to reduce costs and enhance cash flow.
As part of these efforts, Walgreens has already reduced its dividend and is also revisiting plans to divest its international Boots chain, potentially yielding around $8.8 billion.
WBA closed at $22.58 on Tuesday.
