Walgreens Boots Alliance is officially private and will cease to exist as a vertically integrated business on the Nasdaq, as Sycamore Partners closed its deal to acquire the retail pharmacy giant on Thursday.
Operations of the 124-year-old company will now be split, and the various business segments will be standalone, according to a statement from the company.
“Going forward, Walgreens, The Boots Group, Shields Health Solutions, CareCentrix, and VillageMD will operate as separate standalone companies,” according to the statement.
The news comes days after Walgreens was booted off the S&P 500 (^GSPC), replaced by brokerage firm Interactive Brokers (IBKR).
In addition to the deal closing, Staples CEO Mike Motz is slated to take over as Tim Wentworth exits. Motz has been at the helm of Staples for just over six years and will bring a retail focus to the struggling pharmacy.
Under Wentworth, Walgreens has been focused on a turnaround strategy — including shuttering stores and reducing store sizes — to help boost its profitability. The move came as the sector, like other retailers, faced pressure from e-commerce and delivery apps.
Front-of-store sales have typically lagged or been impacted by seasonality quarter over quarter, while prescriptions in the back of store have been a key source of income. Despite attempts to revitalize front-of-store inventory with trending healthier or health-related brands, sales have remained tepid.
Meanwhile, Walgreens has boosted other parts of its business, including its specialty pharmacy, clinical trials, and home health and physician group operations. But with some of those being split into standalone businesses, those operations will be managed by separate teams — and will not contribute to Walgreens’ overall financial health.
Stefano Pessina, Walgreens’ longtime chairperson, will remain involved in the business and is part of the deal’s closing.
“Sycamore is acquiring the business in partnership with Stefano Pessina and his family, who have reinvested 100% of their interests in WBA, demonstrating their ongoing support and confidence in the company’s future,” according to Walgreens.
Walgreens stock will cease trading, and shareholders will receive $11.45 per share plus an additional up to $3 per share from the net proceeds of any potential future sales of VillageMD, the company said.
Anjalee Khemlani is the senior health reporter at Yahoo Finance, covering all things pharma, insurance, provider services, digital health, PBMs, and health policy and politics. That includes GLP-1s, of course. Follow Anjalee as AnjKhem on social media platforms X, LinkedIn, and Bluesky @AnjKhem.
