Walgreens Goes Private, Appoints New CEO
Walgreens is entering a new chapter as a private, standalone company following its acquisition by New York-based private equity firm Sycamore Partners.
Sycamore’s acquisition of Walgreens Boots Alliance closed on Aug. 28. WBA's Walgreens, The Boots Group, Shields Health Solutions, CareCentrix and VillageMD will operate as separate standalone companies.
Sycamore is acquiring the business in partnership with longtime company shareholder Stefano Pessina and his family, who have reinvested their full interests in the business, according to a media release.
As part of the transition, Deerfield, Illinois-based Walgreens has appointed retail veteran Mike Motz as CEO, effective immediately. Motz previously served as CEO of Staples U.S. Retail, another Sycamore portfolio company, and as president of Shoppers Drug Mart, Canada’s largest pharmacy chain.
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Motz succeeds Tim Wentworth, who will continue to serve as a director, Walgreens said. John Lederer, a former Walgreens Boots Alliance (WBA) director and Sycamore senior advisor, has been named executive chairman.
Motz said the new ownership structure positions the 8,500-store chain to sharpen its focus. “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,” he said in the release.
Wentworth, who came out of retirement to lead WBA nearly 2 years ago, reflected on the transition in an Aug. 28 LinkedIn post. “Now, working with Sycamore to take Walgreens private creates an incredible opportunity to evolve and grow the role Walgreens plays in the lives of our patients, customers and communities,” he wrote.
