How Will Walgreen (WAG) Stock React to Possible Sale of Infusion Business?

NEW YORK (TheStreet) -- Walgreen Co. (WAG) , the drugstore chain operator, is considering the sale of a majority stake in its infusion services business, in a deal that could value that division at about $1.5 billion, sources told Reuters.

The company has hired Bank of America (BAC)  to run a sale process for Walgreens Infusion Services, which has already attracted interest from private equity firms, sources added.

On offer is a controlling stake of just over 50% in Walgreens Infusion Services, which has annual earnings before interest, tax, depreciation and amortization of around $105 million, sources told Reuters.

 

Shares of Walgreen are slightly lower in pre-market trade. 

WAG Chart WAG data by YCharts

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

More from Markets

Oil Slumps, Gas Spikes Ahead of Holiday Weekend; Assessing the Chipmakers--ICYMI

Oil Slumps, Gas Spikes Ahead of Holiday Weekend; Assessing the Chipmakers--ICYMI

Week Ahead: Wall Street Looks to Jobs Report as North Korea Meeting Less Certain

Week Ahead: Wall Street Looks to Jobs Report as North Korea Meeting Less Certain

Dow and S&P 500 Decline, Energy Shares Fall as U.S. Crude Oil Slides 4%

Dow and S&P 500 Decline, Energy Shares Fall as U.S. Crude Oil Slides 4%

Replay: Jim Cramer on the Markets, 10-Year Yield, Oil Prices and Foot Locker

Replay: Jim Cramer on the Markets, 10-Year Yield, Oil Prices and Foot Locker

Video: You Could Live in a Ritz-Carlton or St. Regis Home

Video: You Could Live in a Ritz-Carlton or St. Regis Home