Walgreens has struggled lately due to declining prescription reimbursements and rising competition from Amazon and other discount stores. It has closed hundreds of stores in recent years, and it plans to close 1,200 stores by 2027 - a move necessitated by the fact that a quarter of the company’s stores aren’t profitable.

Walgreens is reportedly looking to take itself private in a deal with Sycamore Partners, sending the stock nearly 20% higher Tuesday.

Shares of Walgreens Boots Alliance Inc. launched higher on Tuesday after the Wall Street Journal reported that the drugstore chain was in discussions to sell itself to private-equity firm Sycamore Partners,

Walgreens Boots Alliance shares soared Tuesday afternoon on a report that the struggling pharmacy chain is in talks to sell itself to private equity firm Sycamore Partners.

Investors are cheering the recent report that suggests Walgreens Boots Alliance Inc (NASDAQ: WBA) is considering selling itself to Sycamore Partners – a private equity firm based out of New York. But analysts at TD Cowen are not sure about the logic behind such a deal.