Walgreens Continues Turnaround Efforts Ahead of Planned Acquisition by Private Equity Firm

Core Insights - Walgreens Boots Alliance (WBA) reported a 4.1% year-over-year increase in sales for Q2 fiscal 2025, reaching $38.6 billion, while its operating loss decreased from$13.2 billion to $5.6 billion [1][2] Financial Performance - The sales increase was attributed to cost management efforts and improvements in the U.S. Healthcare business, despite weaker performance in the U.S. Retail Pharmacy segment and legal settlements [4] - The company experienced higher branded drug inflation and prescription volume, but faced lower sales in discretionary categories such as beauty and general merchandise [4] Acquisition Details - WBA is in the process of being acquired by an entity affiliated with Sycamore Partners, with the merger expected to close in the fourth quarter, pending shareholder and regulatory approvals [5] - Following the acquisition, WBA will operate as a private company while maintaining its brand identity and headquarters in the Chicago area [5] Legal Issues - WBA agreed to pay$2.8 million to settle allegations from the U.S. Justice Department regarding inflated prices submitted to Medicaid programs in Massachusetts and Georgia for generic medications [6]