Latest news with #SycamorePartners
Bloomberg
14 hours ago
- Business
- Bloomberg
Banks Start Pitching $4.25 Billion in Debt for Boots Buyout
Wall Street banks including JPMorgan Chase & Co. and UBS Group AG have begun early pricing discussions with investors for a $4.25 billion debt package to help finance Sycamore Partners ' buyout of UK pharmacy Boots, according to people familiar with the matter. The package is now being pre-marketed in multiple parts, as Bloomberg News previously reported: $2.25 billion in term loans and $2 billion in secured bonds, across different denominations.
Yahoo
5 days ago
- Business
- Yahoo
Torrid Holdings Inc.'s (NYSE:CURV) top owners are private equity firms with 55% stake, while 17% is held by individual investors
The considerable ownership by private equity firms in Torrid Holdings indicates that they collectively have a greater say in management and business strategy Sycamore Partners Management, L.P. owns 55% of the company Insiders have been selling lately AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. A look at the shareholders of Torrid Holdings Inc. (NYSE:CURV) can tell us which group is most powerful. The group holding the most number of shares in the company, around 55% to be precise, is private equity firms. Put another way, the group faces the maximum upside potential (or downside risk). Meanwhile, individual investors make up 17% of the company's shareholders. Let's delve deeper into each type of owner of Torrid Holdings, beginning with the chart below. See our latest analysis for Torrid Holdings Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices. We can see that Torrid Holdings does have institutional investors; and they hold a good portion of the company's stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Torrid Holdings' historic earnings and revenue below, but keep in mind there's always more to the story. It would appear that 9.9% of Torrid Holdings shares are controlled by hedge funds. That's interesting, because hedge funds can be quite active and activist. Many look for medium term catalysts that will drive the share price higher. Looking at our data, we can see that the largest shareholder is Sycamore Partners Management, L.P. with 55% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. Meanwhile, the second and third largest shareholders, hold 9.9% and 4.8%, of the shares outstanding, respectively. Lisa Harper, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors. While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future. The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO. Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group. We can report that insiders do own shares in Torrid Holdings Inc.. It has a market capitalization of just US$305m, and insiders have US$28m worth of shares, in their own names. It is good to see some investment by insiders, but it might be worth checking if those insiders have been buying. The general public-- including retail investors -- own 17% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run. Private equity firms hold a 55% stake in Torrid Holdings. This suggests they can be influential in key policy decisions. Sometimes we see private equity stick around for the long term, but generally speaking they have a shorter investment horizon and -- as the name suggests -- don't invest in public companies much. After some time they may look to sell and redeploy capital elsewhere. It's always worth thinking about the different groups who own shares in a company. But to understand Torrid Holdings better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 4 warning signs with Torrid Holdings (at least 2 which can't be ignored) , and understanding them should be part of your investment process. Ultimately the future is most important. You can access this free report on analyst forecasts for the company. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. — Investing narratives with Fair Values Suncorp's Next Chapter: Insurance-Only and Ready to Grow By Robbo – Community Contributor Fair Value Estimated: A$22.83 · 0.1% Overvalued Thyssenkrupp Nucera Will Achieve Double-Digit Profits by 2030 Boosted by Hydrogen Growth By Chris1 – Community Contributor Fair Value Estimated: €14.40 · 0.3% Overvalued Tesla's Nvidia Moment – The AI & Robotics Inflection Point By BlackGoat – Community Contributor Fair Value Estimated: $359.72 · 0.1% Overvalued View more featured narratives — Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Bloomberg
02-07-2025
- Business
- Bloomberg
Banks Are Set to Offload Boots' $4.25 Billion Buyout Debt in July
JPMorgan Chase & Co and UBS Group AG are among a group of Wall Street banks sounding out investors ahead of a mid-July launch for a $4.25 billion debt package backing Sycamore Partners ' buyout of UK pharmacy Boots. The lenders are currently marketing the multi-currency financing, which includes a mix of leveraged loans and high-yield bonds, to a select group of potential buyers, according to people familiar with the matter who requested anonymity due to the private nature of the talks.
Forbes
26-06-2025
- Business
- Forbes
Walgreens Outlook Improves As Buyout Faces Shareholder Vote Next Month
News that Walgreens Boots Alliance quarterly loss was better than expected and pharmacy sales were ... More rising bodes well for a financial turnaround under new ownership, analysts said after the company's June 26, 2025 earnings report. In this photo is a sign outside a Walgreens store in San Pablo, California, US, on Tuesday, Oct. 15, 2024. Photographer: David Paul Morris/Bloomberg News that Walgreens Boots Alliance quarterly loss was better than expected and pharmacy sales are rising bodes well for a financial turnaround under new ownership. Under future owner Sycamore Partners, analysts expect cost-cutting to escalate once the private equity firm's $10 billion purchase of Walgreens is complete before the end of this calendar year. One of the first major hurdles is a vote of shareholders at a special meeting on July 11. But there's been no serious opposition that has emerged to the purchase by Sycamore, which is paying $11.45 per share — 29% above the December stock price. Sycamore also agreed to 'one non-transferable right" to receive up to $3 in cash per Walgreens share 'from the future monetization of WBA's debt and equity interests in VillageMD, which includes the Village Medical, Summit Health and CityMD businesses,' the companies said of Walgreens' primary care businesses. Walgreens reported a net loss of $175 million, or 20 cents a share, in the company's fiscal third quarter ended May 31 compared to net income of $344 million, or 40 cents a share, in the year-ago period. Total sales rose 7% to $39 billion in its third quarter. Walgreens chief executive officer Tim Wentworth highlighted what he called 'continued improvement' in the company's U.S. Healthcare segment, that includes Village Medical, Summit and CityMD. The U.S. healthcare segment, which reported $2.1 billion in third quarter sales, reported an operating loss of $64 million, which was much improved over the operating loss of $220 million in the year-ago quarter, 'reflecting lower acquisition-related amortization and higher contributions from VillageMD risk-based business,' Walgreens said. Meanwhile, analysts were impressed with Walgreens ability to produce 'positive free cash flow in the quarter, a key positive given recent negative free cash flow trends,' Ann Hynes and colleagues at Mizuho Securities USA wrote in a report Thursday. 'WBA continues to expect Sycamore Partner's acquisition of the company to close in either the third of fourth quarter of calendar year 2025.' The Sycamore deal comes after Walgreens, which had a market value of more than $100 billion a decade ago, undertook the failed VillageMD in-store clinic rollout that led it to close hundreds of stores to reduce debt and stem financial losses. Wentworth said Walgreens is benefiting from 'cost savings initiatives' that include closing underperforming stores. Walgreens is on pace to meet its goal of closing 1,200 stores by its fiscal 2027. The company, which operates about 8,000 U.S. stores, has closed a little more than 400 stores in the first nine months of its fiscal year ended May 31 and said it would close 500 in this fiscal year. Walgreens third quarter results were much improved over its second quarter when the company in March reported a $2.8 billion loss thanks to a large impairment charge related to its struggling doctor-staffed clinic investment in VillageMD. Analysts who follow Walgreens see the move to private ownership as another plus because the company and a stock price attached to public ownership will no longer be subject to the whims of Wall Street. 'By making the move to go private, Walgreens will have the time for reinvention, something not possible as a public company chasing quarterly numbers," said Dave Mayer, Senior Partner at the brand consultancy Lippincott.
Miami Herald
26-06-2025
- Business
- Miami Herald
Another giant retailer permanently closes more locations
These are challenging times for retailers. Estimates say that more than 15,000 stores across the U.S. will close in 2025, which is more than double the number that closed in 2024. The data concerns not only smaller businesses, but also large national retailers with a strong footprint across the states. This year, many famous brands, department stores and popular chains have shut a number of locations, and some have even gone bankrupt. Don't miss the move: Subscribe to TheStreet's free daily newsletter For example, JCPenney, which has been in business for 123 years as of 2025, has announced plans to shutter more locations this year. Joann declared bankruptcy and closed all of its retail stores after 82 years in business. Then there's CVS, Kohl's, Walmart, and At Home, which are also downsizing their brick-and-mortar footprints. In the majority of cases, retailers were forced to shut down due to economic challenges emerging since the Covid pandemic. As if the pandemic wasn't a huge enough blow for brick-and-mortar stores, retailers are now also dealing with higher cost of labor, persistent inflation, and increased rates on debt obligations. Often major retailers close stores to optimize operations or experiment with new models such as e-commerce, and closures don't necessarily indicate that the retailer is struggling. Image source: Shutterstock For more than 35 years, Staples has been one of the leading retailers in the workspace products sector, offering traditional office supplies, furniture, cleaning products, and technology. Its first store opened back in 1986 in Brighton, Mass., and in 10 years it secured its place in the Fortune 500's list of the largest U.S. corporations by total revenue for their respective fiscal years. Related: Major bankrupt home retailer closing 26 stores, list revealed In 2014, when the competition from online sellers intensified, Staples started closing some of its stores. Remember how the term "Amazon effect" arose in 2012 to describe the disruptive effect the online retailer had on the global retail industry? Nevertheless, in 2015 Staples was back on its feet with huge plans to acquire Office Depot and OfficeMax. The purchase fell through, however, as it was blocked on antitrust grounds. The failed acquisition pushed Staples into shifting its retail strategy by reducing the number of brick-and-mortar stores and focusing more on business-to-business services. In 2017, Staples was sold to a private equity firm, Sycamore Partners, for $6.9 billion. A huge part of the acquisition was made through a substantial debt, and two years later, Sycamore Partners finalized a $5.4 billion refinancing. More closings: Another drugstore chain going away forever after 130 yearsAnother beloved brewery closes for tragic reasonAfter 2 Chapter 11 bankruptcies, fashion retailer shutting down The private company was placed under scrutiny as it took $1 billion out of Staples and paid it to itself as a dividend, which is an unusually large amount, according to Bloomberg. This indicates that Sycamore managed to return about 80% of its original investment in Staples in less than two years. Now, Staples is making headlines again with new closures. Earlier this year, Staples closed two stores in Connecticut: one in Newington and another in Norwich. Reasons for the closure of Staples store in Newington this March are unknown, except it was confirmed that Bob's Discount Furniture will take over the location. Related: Struggling department store chain shares more bad news The store in Norwich closed in May because Hartford Healthcare purchased the lease to expand into the space. However, Norwich General Manager Heather Kenyon noted that Staples is still opening new stores, and that the company might return to Norwich in the future, writes The Bulletin. Also in March, Staples closed its only store in Minnesota, reminding customers they can continue to purchase Staples products online. More recently, Staples confirmed the closure of one of its two Norwalk, Conn., locations. An employee at the Staples store at 654 Main Ave. in Norwalk confirmed on June 24 that the store would permanently shut down on August 8, reported the CT Post. Staples' other store is located about four miles away from the Main Ave. location. After these four closures, about 24 Staples stores remain in the Nutmeg state, and some 840 stores remain nationwide. The reason behind the latest closure was not yet disclosed, according to the outlet. Staples closed multiple stores last year as well, and customers shared their thoughts on Reddit, with many of them arguing that Staples is a "dying company" and that it is just a matter of time when it will file for bankruptcy. Related: Veteran fund manager unveils eye-popping S&P 500 forecast The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
