Non-public-equity agency Sycamore Companions Administration LP has accomplished its roughly $10 billion acquisition of Walgreens Boots Alliance Inc. and break 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 Government 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 p.c. On Aug. 28, the consumers closed the transaction and stated Walgreens’ former items— 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 below personal possession, they may construct on their proud legacies to boost the client expertise and deepen the trusted relationships they’ve earned with hundreds of thousands of consumers around the globe,” Stefan Kaluzny, a managing director of Sycamore, stated in a press release.
Walgreens is coming into its new chapter with a brand new chief. The Sycamore group 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 vice chairman 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 dwelling 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 group had begun trying to shrink the corporate’s stake in Village, which on the time ran greater than 500 clinics in 15 markets however had fallen in need of monetary targets. In January, he clarified that in saying that the aim 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 mother or father firm. When saying their WBA buy plan earlier this 12 months, Sycamore officers stated they hoped to promote at the very least some belongings earlier than 12 months’s finish.
