Private Equity Firm Sycamore Completes $23.7B Walgreens Acquisition

Sycamore Partners has completed its $23.7 billion acquisition of Walgreens Boots Alliance, transitioning the nearly 100-year-old pharmacy giant from a publicly traded company to a private entity. Walgreens, along with The Boots Group, Shields Health Solutions, CareCentrix, and VillageMD, will now operate as standalone companies under private ownership, with Walgreens maintaining its headquarters in Illinois. The acquisition was made in partnership with Walgreens executive chairman Stefano Pessina and his family, who reinvested all their interests in the company, signaling continued confidence in its future. Mike Motz, formerly CEO of Staples US Retail, a Sycamore portfolio company, has been appointed as the new CEO of Walgreens, replacing Tim Wentworth, who remains on the board. The deal marks the largest retail leveraged buyout ever, and Sycamore, a firm with retail but no health care experience, may consider selling off some of Walgreens' specialty businesses like Shields and VillageMD to reduce debt. This acquisition comes after years of challenges for Walgreens, including store closures and a reversed strategy to expand primary care through VillageMD clinics.