Sycamore Partners acquires Walgreens in $10 billion deal
Walgreens has undergone a major leadership shakeup following its $10 billion acquisition by private equity firm Sycamore Partners. The deal, finalized on Thursday, also marks a structural overhaul that splits the business into several independent companies.
According to a company statement, Walgreens — the well-known U.S. retail pharmacy chain — will now operate separately from its former affiliates, which include Boots Group, Shields Health Solutions, CareCentrix, and VillageMD.
As part of the transition, Mike Motz, the former CEO of Staples U.S. Retail (another Sycamore-owned company), has been appointed as the new chief executive officer of Walgreens. He replaces Tim Wentworth, who previously served as CEO of Walgreens Boots Alliance Inc., the umbrella company that oversaw all of the businesses.
Wentworth will continue with the organization as a director of the newly separated retail pharmacy unit. Sycamore declined to comment on Wentworth’s shift in role, while Walgreens said no executives were available for interviews.
The acquisition comes at a turbulent time for U.S. retail pharmacies. Chains like Walgreens have been grappling with shrinking prescription reimbursements, labor challenges, and intensifying competition from online retailers and mail-order services.
Sycamore’s move to separate Walgreens’ assets signals a strategy to streamline operations and potentially position the businesses for stronger standalone growth. However, industry analysts suggest that the restructuring also reflects the mounting pressure on traditional pharmacy operators to reinvent themselves in a rapidly changing healthcare landscape.
