Overview

• Walgreens will separate its U.S. retail pharmacy, Shields Health Solutions, CareCentrix, VillageMD and the U.K.-based Boots Group into standalone businesses.
• Mike Motz, formerly CEO of Staples U.S. Retail and ex-president of Shoppers Drug Mart, replaces Tim Wentworth as chief executive; Wentworth stays on as a director.
• John Lederer becomes executive chairman, and Stefano Pessina and his family reinvested 100% of their Walgreens interests alongside Sycamore.
• The take-private follows sustained financial pressure, including a fiscal 2024 net loss of more than $8 billion tied in part to VillageMD, elevated debt, a suspended dividend and plans to close about 1,200 U.S. stores.
• A private equity watchdog warned the largely debt-financed deal could constrain investment and heighten future financial risk, citing Sycamore’s track record with other retailers.