Sycamore Partners is nearing an acquisition of WalgreensBoots 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.
Photo: Sandra Halliday
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.
Italian jewellery brand Pomellato has released the eighth edition of its campaign celebrating International Women’s Day. The initiative, bringing together influential names like Jane Fonda, America Ferrera and Mariska Hargitay, to name a few, highlights a tragic reality: one in three women is a victim of domestic violence.
Pomellato
Pomellato’s video and print campaign calls for a switch from passive observation to active intervention, transforming the celebrities who joined the campaign into “social sentinels”. “Just look around you,” urges Fonda in the black and white video. “One in three women is a victim of domestic violence,” adds Hargitay, drawing on her decades of work on behalf of survivors. Ferrera emphasises this harsh reality, underlining “One in three”.
Besides Academy Award winner and activist Fonda, Ferrera, and Hargitay, actress and founder of NGO The Joyful Heart Foundation, the campaign is fronted by actress Laura Harrier, Italian Olympic athlete Mattia Furlani, and Professor Gianvito Martino, neuroscientist at the San Raffaele Vita-Salute University in Milan. They join Sabina Belli, CEO of Pomellato and founder of the #PomellatoForWomen platform, in challenging collective complicity in what is a genuine societal emergency.
“Domestic violence is a collective wound that scars society as a whole. As a maison standing alongside women since 1967, we believe that the transformation begins when we all accept our role as social sentinels. It means we must be vigilant and have the courage to act. It means understanding that silence doesn’t mean neutrality, it means complicity. We need to shift from awareness to action, from empathy to systemic change,” said Belli.
Celebrating its 40th year, British lifestyle brand White Stuff is delving into its archive to launch a 17-piece collection called ‘Rewind ’85′.
Toyah Willcox, Martin Kemp and Sinitta join The White Stuff call centre to take Rewind ’85collection orders
In a tribute to the brand’s original designs, the range “brings a modern twist to nostalgic customer favourites”. These include graphic tees, first sold to skiers in 1985, to ‘90s surfer-style’ half-zips.
And to mark the occasion, the brand also re-launched a hotline (“with the help of a few 80s icons”, including Martin Kemp, Toyah Willcox and Sinitta, taking calls at the brand’s call centre in Leicester) where customers were able to call in to order from the range before its 4 March launch online.
The launch also marks a nostalgic journey from when founders George Treves and Sean Thomas had the idea of designing and selling T-shirts in the Alps to fund their winter skiing trips, first sold from the back of an old Citroen 2CV. We’re told these original designs have since become “iconic”, with the tees and half zips “becoming firm favourites among those lucky enough to own them”.
To mark the anniversary, White Stuff also polled its customers via social channels to discover which past pieces they wanted to bring back from the archive. So the Rewind ’85 collection features curated garments across ski- and surf-inspired half zips and rebooted heritage tees, paying homage to the original references to the ‘Boys and Girls from White Stuff’ prints.
The collection is also “a love letter to both the original designs – which embody the relaxed, unique style at the heart of the brand’s roots – and customers who have cherished the designs for decades”.
So the art direction features nostalgic 80s and 90s office-style imagery and video, shared across the brand’s social channels (IG, Facebook, X and TikTok).
To complement the launch, 13 White Stuff stores – including in Manchester, Liverpool and Edinburgh — have also had their windows overhauled to feature the retro campaign.
In addition, the brand will use outdoor advertising across 13 locations and 139 sites in the UK from next week to showcase Rewind ’85 product on Cornish surfers and Scottish ski tourers.
White Stuff CEO Jo Jenkins said: “We’ve built such a loyal customer base since White Stuff started… and while we’re proud to be the modern brand we are today, we never want to forget our heritage.”
Zalando issued an upbeat results report on Thursday, talking of expectations for “accelerating growth” in 2025 after a strong 2024 performance.
Zalando
And it talked up the key new partnership with the UK’s Next that was announced late last year. This year, Zalando’s ZEOS logistics operation is becoming the “partner of choice” for Next in fulfilling online DTC orders for most of continental Europe. The partnership, will see it introduce new fulfilment features “that will benefit all ZEOS clients in the future. These include advanced fulfilment capabilities — like virtual bonded warehousing — as well as enhanced onboarding and inventory management capabilities. ZEOS is also expanding its services to 10 additional European markets, where Next is already trading”.
Thursday saw the German e-tail giant detailing its expectations for the current trading year and it said its 2025 gross merchandise volume (GMV) and revenue should grow between 4% and 9%, “driven by the successful execution of Zalando’s ecosystem strategy across both growth vectors business-to-consumer (B2C) and business-to-business (B2B)”. That excludes an impact from its About You acquisition on either revenue or profits.
Meanwhile adjusted earnings before interest and taxes (EBIT) should rise to a range between €530 million and €590 million.
Zalando – DR
2024 strength
That confidence comes after a buoyant 2024 as both GMV and revenue were in the upper half of the firm’s guidance range, with 4.5% and 4.2% growth, respectively. GMV reached €15.3 billion, while revenue was €10.6 billion.
B2C revenue was up to €9.657 billion from €9.301 billion. And B2B revenue was up to €952 million from €854 million.
Its adjusted EBIT jumped to €511 million from €350 million, which actually beat the updated guidance for €440 million-€480 million it had issued earlier.
The adjusted EBIT margin also rose from 3.5% in 2023 to 4.8% in 2024, “supported by strong operational efficiencies and a significantly higher B2C gross margin, which saw a year-on-year increase of more than 2 percentage points to 43.5%”.
Net income rose to €251.1 million from €83 million in FY23.
Zalando is now Diane von Furstenberg’s exclusive retail partner in Europe – Zalando x DvF
And it returned to active customer growth in 2024, with the number up 4.5% to an all-time high of 51.8 million. The number of orders rose to 251 million from 245 million and while average orders per active customer dipped slightly to 4.8 from 4.9, the average basket size rose to €60.90 from €59.80.
The company is aiming to “build the leading pan-European fashion and lifestyle e-commerce ecosystem along two growth vectors B2C and B2B” with co-CEO Robert Gentz saying that “our ecosystem strategy is progressing well and is our exciting new North Star”.
In 2024, the company made “significant strides” in onboarding new, “highly relevant brands and assortments” like Versace menswear, Marine Serre, On running, and Fjällräven, enhancing its Designer and Sports offerings. In February, Zalando also became the exclusive retailer for Diane von Furstenberg in Europe.
The e-tailer also improved product presentation through “elevated product detail pages, and is taking the product experience even further with tailored and innovative digital experiences such as its digital size advice for customers based on reference items and body measurements”.
Since the initial launch in 2022, Zalando has also doubled the Adaptive fashion assortment, offering more than 600 styles in the course of 2024 — 170 more than the year before — across several categories, including footwear, sports and kidswear.
It has also expanded its “try before you pay” solution with “success” in Germany leading to expansion to eight more markets.
Lounge by Zalando – DR
And talking of expanding its initiatives to further markets, its Beauty proposition is to be expanded to Spain and Finland, so will be serving customers in 13 European markets. Meanwhile discount shopping club Lounge by Zalando is being expanded to five more countries in 2025, to be available in 22 markets.
Other developments this year include rolling out the company’s updated loyalty programme Zalando Plus further. The programme has already been successfully launched in Germany, Italy, Spain, France, the Netherlands, Switzerland, and Austria, and will be rolled out to most markets in 2025.
Zalando will also expand its platform into new markets, launching in Portugal, Greece and Bulgaria.
The company is focusing on tech too and is piloting an outfit-builder experience called Stylelt, which allows users to style a complete outfit on the avatar of their choice, “letting them experiment with different looks and share their inspirations with friends, family, and followers”.
Meanwhile, in B2B, it’s opening up its logistics infrastructure, software, and service capabilities “to be a key enabler for brands’ and retailers’ e-commerce transactions with its ZEOS operation system, regardless of whether they take place on or off its platform”.
We’ve already mentioned the big Next deal, but as well as that, ZEOS now serves 12 markets following the launch in Switzerland, Poland and Spain.
Beyond that, merchants can now sell on 10 different channels, including brands’ own e-com destinations, as well as via nine marketplaces that collectively cover 85% of the total marketplace volume in Europe.