Sycamore Completes Acquisition of Walgreens Boots Alliance, Forms 5 Companies

Sycamore Partners said Thursday (Aug. 28) that it completed its acquisition of Walgreens Boots Alliance and that the businesses that made up WBA are now operating as standalone companies under private ownership.

Those companies include Walgreens, The Boots Group, Shields Health Solutions, CareCentrix and VillageMD, Sycamore said in a Thursday press release.

In addition, with the completion of the acquisition, WBA’s common stock is no longer trading and will no longer be listed on the Nasdaq, according to the release.

“As standalone companies under private ownership, they will build on their proud legacies to enhance the customer experience and deepen the trusted relationships they have earned with millions of customers around the world,” Sycamore Managing Director Stefan Kaluzny said in the release.

Stefano Pessina and his family partnered with Sycamore in the acquisition, reinvesting 100% of their interests in WBA, per the release.

“This milestone begins a new chapter for Walgreens, The Boots Group and the other portfolio businesses,” Pessina said in the release.

Walgreens said in its own Thursday press release that Mike Motz, who was formerly CEO of Staples US Retail, another Sycamore portfolio company, has been appointed CEO of Walgreens, effective immediately.

Motz replaces Tim Wentworth, who will continue to serve as a director, according to the release.

Prior to his role at Staples, Motz served as president of Canadian pharmacy chain Shoppers Drug Mart, per the release.

Sycamore said, per the release, that Motz brings to Walgreens “a renewed focus on retail, a customer-first mindset and significant operational discipline.”

Motz said in the release: “As a private organization, alongside our dedicated team members, we are renewing our focus on our core pharmacy and retail platform, our stores and our customer experience — building on the progress that’s been made.”

WBA said in March that it agreed to be acquired by Sycamore and that it expected the transaction to close in the fourth quarter.

Wentworth said at the time that the transaction would help WBA “navigate the challenges of a rapidly evolving pharmacy industry and an increasingly complex and competitive retail landscape.”

It was reported at the time that Walgreens had been under pressure because of challenges facing the pharmacy business and had seen its shares heading downward for nearly a decade.