Sycamore Partners has completed its $10bn acquisition of Walgreens Boots Alliance, carving out the core US pharmacy chain into a private standalone company under the leadership of new CEO Mike Motz, former CEO of Sycamore-owned Staples US Retail.
As part of the transaction, Walgreens has been separated from its former portfolio of businesses – Boots Group, Shields Health Solutions, CareCentrix, and VillageMD — which will now operate independently. The deal, first announced in March, comes amid a challenging period for US retail pharmacies, pressured by shrinking prescription reimbursements and rising competition from online players.
Motz, previously president of Canada’s Shoppers Drug Mart, replaces Tim Wentworth, who will continue to serve as a director of the standalone pharmacy business. John Lederer, senior advisor to Sycamore and a former WBA board member, has been named executive chairman.
Stefano Pessina and his family, longtime backers of Walgreens, have rolled 100% of their equity into the deal.
Founded in 1901, Walgreens operates around 8,500 stores across the US and Puerto Rico, serving nearly nine million customers daily. The company employs around 220,000 people, including 90,000 healthcare providers.
