Personal-equity agency Sycamore Companions Administration LP has accomplished its roughly $10 billion acquisition of Walgreens Boots Alliance Inc. and cut up the holding firm into 5 separate corporations whereas naming a brand new CEO for the flagship retailer.
New York-based Sycamore introduced in March it was partnering with Walgreens Govt Chairman and former boss Stefano Pessina to take over Walgreens and attempt to resurrect its fortunes within the retail pharmacy market whereas separating its healthcare companies enterprise, most notably the unprofitable Village MD primary-care enterprise of which it owns 53 %. On Aug. 28, the consumers closed the transaction and mentioned Walgreens’ former models— Walgreen Co., United Kingdom retailer The Boots Group, specialty pharmacy Shields Well being Options, homecare supplier CareCentrix in addition to VillageMD—will now be run individually.
“As standalone corporations underneath non-public possession, they may construct on their proud legacies to reinforce the shopper expertise and deepen the trusted relationships they’ve earned with hundreds of thousands of consumers all over the world,” Stefan Kaluzny, a managing director of Sycamore, mentioned in an announcement.
Walgreens is getting into its new chapter with a brand new chief. The Sycamore staff has named Mike Motz CEO, efficient instantly. Motz is well-known to Sycamore: He was till now CEO of Staples US Retail, one other firm in Sycamore’s portfolio. He additionally has pharmacy expertise as president of Canada’s Consumers Drug Mart for 3 years final decade.
Motz replaces Tim Wentworth, who had moved into the CEO seat within the fall of 2023 after Roz Brewer left Walgreens Boots Alliance. Wentworth has been named a director of the brand new Walgreen Co. however has given up his government roles. Equally, Mary Langowski has resigned her place as government vp and president of Walgreens Well being at Walgreens Boots Alliance.
A possible subsequent milestone for the previous Walgreens Boots Alliance is a number of transactions involving Village MD, which is residence Summit Well being and CityMD in addition to its namesake chain of clinics. Wentworth instructed traders in the course of final 12 months that his staff had begun seeking to shrink the corporate’s stake in Villagewhich on the time ran greater than 500 clinics in 15 markets however had fallen wanting monetary targets. In January, he clarified that in saying that the objective was to promote Village Medical whereas greatest choices for the Summit/CityMD group have been nonetheless being evaluated.
Former shareholders of WBA are in line to obtain as much as $2.7 billion from any gross sales of Village debt or fairness by its former guardian firm. When asserting their WBA buy plan earlier this 12 months, Sycamore officers mentioned they hoped to promote a minimum of some belongings earlier than 12 months’s finish.
