Walgreens names new CEO as company goes private
Sycamore Partners has completed its $10 billion acquisition of Walgreens Boots Alliance.
With the closing of the deal, Walgreens is now operating as a private standalone company. Mike Motz has been appointed as CEO of Walgreens, effective immediately.
Most recently, Motz was CEO of Staples U.S. Retail, a Sycamore portfolio company, which he joined in April 2019. Before that, he spent 14 years at Shoppers Drug Mart, the leading pharmacy chain in Canada, including serving as president.
Motz replaces Tim Wentworth, who was named CEO of Walgreens Boots Alliance (WBA) in 2023 and will continue to serve as an ongoing director. John Lederer, a former director of WBA and a senior advisor to Sycamore, has been appointed executive chairman of Walgreens.
“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.”
Going forward, Walgreens, The Boots Group, Shields Health Solutions, CareCentrix and VillageMD will operate as separate standalone companies.
"We look forward to partnering with the management teams at each company, including Walgreens, The Boots Group, Shields Health Solutions, CareCentrix and VillageMD," said Stefan Kaluzny, managing director of Sycamore. "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.”
Sycamore is acquiring Walgreens Boots Alliance, in partnership with Stefano Pessina and his family, who have reinvested 100% of their interests in the company.
“This milestone begins a new chapter for Walgreens, The Boots Group and the other portfolio businesses,” said Pessina. “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 organizations and the essential role they play in millions of lives each day.”
With the completion of the deal, WBA's common stock has ceased trading and will no longer be listed on the Nasdaq.
Advisors
UBS Investment Bank is acting as lead financial advisor, Goldman Sachs and J.P. Morgan are acting as co-lead financial advisors, Citi and Wells Fargo are acting as financial advisors, Davis, Polk & Wardwell LLP is acting as legal counsel and Bass Berry & Sims PLC is acting as healthcare regulatory counsel to Sycamore.
Centerview Partners is acting as financial advisor, Kirkland & Ellis LLP is acting as legal advisor and Ropes & Gray LLP is acting as healthcare regulatory counsel to WBA. Morgan Stanley & Co. LLC was also a financial advisor, and provided a fairness opinion to the WBA Board of Directors.
Debevoise & Plimpton LLP is acting as legal advisor to Stefano Pessina.
