Sycamore Partners Acquires Walgreens, Announces Major Restructuring

On August 28, 2025, private equity firm Sycamore Partners completed its acquisition of Walgreens Boots Alliance (WBA), transitioning the company from public to private ownership in a deal valued at approximately $10 billion. This marks the end of WBA's nearly century-long tenure as a publicly traded entity. Concurrently, Mike Motz, former CEO of Staples U.S. Retail, has been appointed as the new Chief Executive Officer of Walgreens.

The acquisition, initially announced in March 2025, involved Sycamore Partners paying $11.45 per share in cash, representing a 29% premium over WBA's closing share price of $8.85 on December 9, 2024. Shareholders also received a non-transferable right to potentially gain up to an additional $3.00 per share from the future monetization of WBA’s interests in VillageMD, potentially increasing the total value of the deal to $23.7 billion. The transaction received overwhelming approval from WBA shareholders in July 2025, with approximately 96% of votes cast in favor.

Mike Motz brings extensive retail experience to his new role as CEO of Walgreens. Prior to leading Staples U.S. Retail, he served as President of Shoppers Drug Mart, Canada's largest pharmacy chain. Motz replaces Tim Wentworth, who had been CEO since 2023 and will continue to serve as a director on the company's board. Additionally, John Lederer, a former director of WBA and a senior advisor to Sycamore, has been appointed Executive Chairman of Walgreens.

In a strategic move to enhance operational focus, the company announced plans to restructure its operations by splitting into five standalone entities: Walgreens, The Boots Group, Shields Health Solutions, CareCentrix, and VillageMD. This restructuring aims to provide each business with greater flexibility to concentrate on their respective markets and customer bases.

Prior to the acquisition, WBA faced several financial challenges, including declining prescription reimbursement rates, increased competition from online retailers like Amazon, and rising operational costs. In response, the company had initiated cost-cutting measures, such as plans to close 1,200 of its 8,500 U.S. stores and suspending a quarterly dividend that had been maintained for over 90 years.

The acquisition and subsequent restructuring have several potential implications:

• Employment: The closure of 1,200 stores could lead to significant job losses, affecting thousands of employees.

• Healthcare Access: Store closures may impact communities' access to pharmacy services, particularly in underserved areas.

• Market Competition: The privatization and restructuring may influence competitive dynamics in the pharmacy and retail sectors, potentially affecting pricing and service offerings.

Stefan Kaluzny, Managing Director of Sycamore Partners, expressed confidence in the future of the company, stating, "Walgreens Boots Alliance, Inc., its companies and its dedicated team members play an essential role in the communities they serve around the world. We look forward to partnering with the management teams at each company... 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."

As Walgreens embarks on this new chapter under private ownership, the focus will be on revitalizing its operations and navigating the evolving landscape of the retail pharmacy industry.