Walgreens is Considering Going Private

In what could be the biggest LBO in history, it has been reported that Walgreens Boots Alliance is exploring going private.

According to CNBC, citing people familiar with the situation, the company has reached out to private equity firms about a deal that could take it private. The sources have revealed that one of the firms looking at a deal is KKR.

With a market cap of roughly $55 billion, it would be a very large purchase for a single buyer.

It was in 2007 that KKR bought Alliance Boots in partnership with Stefano Pessina, then the executive chairman of Alliance Boots, and other investors.

KKR remained an investor after Walgreens announced a two-part deal to acquire Alliance Boots in 2012. By the time Walgreens acquired all of Alliance Boots, in 2015, KKR had nearly increased its cash investment by 4 folds, according to media reports at the time.

Reuters has also reported that Walgreens is working with investment bank Evercore to explore whether it can put together a deal.

Walgreens has not commented and says the company does not comment on rumors or speculation.

Shares of Walgreens have dropped around 22% in the last 12 months.

Disclaimer: We have no position in Walgreens Boots Alliance Inc. (NASDAQ: WBA) and have not been compensated for this article.