Private equity company Sycamore Partners has concluded the buyout of US retail pharmacy giant Walgreens Boots Alliance (WBA).
The deal was executed in collaboration with WBA executive chairman Stefano Pessina and his family, who have reinvested their entire stake in the retail company.
The company has now been split into five businesses that will function independently, namely The Boots Group, CareCentrix, Shields Health Solutions, VillageMD and Walgreens.
WBA's common stock has now been withdrawn from the Nasdaq.
WBA shareholders received $11.45 per share in cash and a contingent right to additional proceeds of up to $3 per share, tied to the future monetisation of WBA's interests in VillageMD, including Village Medical, Summit Health, and CityMD businesses.
Mike Motz has become Walgreens CEO, with immediate effect. He previously acted as CEO of Staples US Retail, a Sycamore portfolio company, as well as president of Canadian pharmacy chain Shoppers Drug Mart.
He succeeds Tim Wentworth, who will remain an ongoing director, while former WBA director of WBA and Sycamore’s senior adviser John Lederer will assume the role of Walgreens’ executive chairman.
Sycamore managing director Stefan Kaluzny said: “Walgreens Boots Alliance, 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.”
Pessina said: “This milestone begins a new chapter for Walgreens, The Boots Group and the other portfolio businesses. Our family has proudly supported these companies for decades, and we are pleased to continue that commitment alongside Sycamore. Together, we are united in our belief in the future of these organisations and the essential role they play in millions of lives each day.”
In July, WBA shareholders granted approval to the company’s acquisition by Sycamore Partners Management affiliated entities.
