Drug store retailer Walgreen Co. is now operating as a private standalone company following the completion of its acquisition by a private equity firm Sycamore Partners, which is acquiring the business in partnership with Stefano Pessina and his family, who have reinvested 100% of their interests in Walgreens Boots Alliance Inc.
With the completion of the acquisition, Walgreens Boots Alliance’s common stock has ceased trading and will no longer be listed on the Nasdaq. Following the closing of the transaction, Walgreens, The Boots Group, Shields Health Solutions, CareCentrix and VillageMD will operate as separate, standalone companies.
The new owner has appointed Mike Motz as chief executive officer of Walgreens. effective immediately. He replaces Tim Wentworth, who will continue to serve as a director. John Lederer, a former director of Walgreens Boots Alliance Inc. and a senior advisor to Sycamore Partners, has been appointed executive chairman of Walgreens.
Motz was formerly CEO of Staples US Retail, a Sycamore Partners portfolio company. Prior to that, he served as president of Shoppers Drug Mart, a major pharmacy chain in Canada.
According to Sycamore partners, Motz “brings a renewed focus on retail, a customer-first mindset and significant operational discipline to guide Walgreens into its next chapter as a private company.”
“Today represents an exciting new chapter and a turning point for Walgreens,” said Motz. “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.”
Stefan Kaluzny, managing director of Sycamore Partners, said, “We are pleased to have closed this momentous transaction with an outstanding brand that has been a cornerstone of American communities for nearly 125 years. Walgreens benefits millions of Americans, and I am confident that, enhanced by the flexibility of operating as a private standalone organization, it can move with certainty, speed and focus to deliver meaningful value to its customers.”
Stefano Pessina said, “Walgreens is an incredible brand, with loyal customers around the country. I believe strongly in the business and its significant impact on the communities it serves. My family and I are pleased to support its continued evolution as we embark on this next chapter. I want to thank the leadership team for stabilizing the business and providing a strong foundation upon which we will build to reach new heights. Walgreens has a very bright future in partnership with Sycamore.”
Sycamore Partners, New York, specializes in consumer, distribution and retail-related investments.
Founded in 1901 and becoming a public company in 1927, Deerfield, Illinois-based Walgreens serves nearly nine million customers and patients each day across its approximately 8,500 stores throughout the United States and Puerto Rico.
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