VillageMD Exploring Sale or Restructuring Options with Evercore and Alvarez & Marsal
VillageMD, the healthcare clinic chain backed by Walgreens Boots Alliance, is collaborating with Evercore and Alvarez & Marsal to assess potential options, including a sale or operational restructuring.
Walgreens' CEO, Tim Wentworth, has expressed the company's intention to divest VillageMD and allocate the proceeds to debt reduction and balance sheet improvement.
VillageMD's financial performance has faced challenges, with an operating loss of $325 million for the quarter ending November 2023. The company also experienced a default on senior secured debt provided by Walgreens in 2023.
Amidst these developments, Sycamore Partners has explored the possibility of a Walgreens acquisition. Concurrently, the drug store chain faces a potential $988 million payout following a court ruling.
Walgreens remains committed to evaluating the future of its investment in VillageMD through discussions with stakeholders and third parties.