Sycamore Partners is nearing an acquisition of Walgreens Boots Alliance, people with knowledge of the matter said, in a deal that could end the beauty and health retailer’s tumultuous run as a public company.

The private equity firm and US-based Walgreens are said to be putting the final touches on a transaction that may be announced as soon as this week. The Wall Street Journal reported earlier that Sycamore was closing in on a deal to acquire Walgreens for $11.30 to $11.40 per share in cash, or around $10 billion.

Following the news, Walgreens’ shares surged as much as 8.2%, closing at $10.84, which is understandable given the potential offer price.

If the deal proceeds, Walgreens would be removed from the stock market, marking the end of its public trading period, which has been characterised by declining revenues, legal challenges related to opioid prescriptions, and increasing competition in the healthcare sector.

Potential restructuring of Walgreens

A takeover by Sycamore could lead to a significant restructuring of WBA, potentially involving the break-up of the company’s various divisions. Its portfolio includes UK beauty and health chain Boots, US healthcare provider VillageMD, drugstore chain Duane Reade, and speciality pharmacy group Shields Health Solutions.

Boots in particular is interesting at the moment and despite some tough times in recent years, appears to be on a solid recovery trajectory that’s making the most of its strength in both mass-market and prestige beauty.

Analysts have long suggested that Walgreens’ complex business model would require restructuring to optimise its operations. Reports indicate that Stefano Pessina, Walgreens’ chairman and a key figure behind its 2014 merger with Alliance Boots, is expected to roll over his stake as part of the transaction.

While discussions are at an advanced stage, sources caution that delays or last-minute hurdles could still emerge before the official announcement.

Financing and previous takeover attempts

The transaction would require significant financing from banks, and reports suggest that several of the largest financial institutions in the US are preparing proposals to support the acquisition.

This isn’t the first time Walgreens has considered going private. In 2019, KKR & Co. explored a leveraged buyout of the company, but the deal ultimately collapsed. For Sycamore, this acquisition represents another high-profile retail deal, underscoring private equity’s continued interest in large-scale transactions within the healthcare and consumer sectors.

There have been a number of other attempts to sell the business but these have reportedly faltered on the inability to find a buyer who would pay the price WBA wanted.

YSL Beauty has unveiled a new global campaign, Don’t Call It Love, part of its Abuse Is Not Love programme.

It portrays a “seemingly idyllic Parisian romance where the warning signs of abuse are hidden in plain sight to educate about domestic violence”. 

Through the launch, the brand “invites a collective reflection on how it can contribute to healthier representations of love and create narratives that do not perpetrate toxic relationship norms”.

It comes as intimate partner violence (IPV) is the most common form of violence against women, affecting around 736 million women and girls globally with the behaviour linked to it “wrongly justified as love”. 

Since the launch of the Abuse Is Not Love programme in 2020, YSL Beauty has donated over €5.2 million to local NGO-partners and more than 1.3 million people have been trained or supported across 25+ markets.

The programme is also said to have “made significant strides in educating young people about IPV and empowering grassroots organisations on a global scale”.

The company said the campaign “cleverly subverts the timeless and expected codes of luxury advertising”. The people featured give an initial impression “of a magnetic and elegant couple”.

But we’re told that “as the story progresses, a subtle unease begins to creep in. Almost imperceptibly, warning signs of abuse emerge, woven into the fabric of these seemingly romantic scenes. Viewers are drawn into the narrative, initially captivated by the romance, then subtly unsettled by a growing sense of disquiet”.

The film abruptly halts, with the question: did you see signs of abuse in this film? The narrative then rewinds, “exposing the signs of abuse from each scene, hidden in plain sight”.

YSL said that “media portrayals of toxic relationships often romanticise, trivialise or even glamorise abusive behaviours, impacting young people’s understanding of healthy relationships”.

The campaign was brought to life by Léa Ceheivi, award-winning French film director, known for her collaborations with music titans Justice and luxury brands; Nicolas Loir, the director of photography, best known for his work within the music industry, notably with Blaze and also with luxury brands; and Dr Sara Kuburic, lead film consultant and doctor of psychotherapy, known widely as the Millennial Therapist.