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Sycamore Partners has completed its acquisition of Walgreens Boots Alliance, the company announced Thursday.
Following the closing, Walgreen and other WBA businesses will operate as private standalone companies. This includes The Boots Group, Shields Health Solutions, CareCentrix and VillageMD.
Private equity firm Sycamore Partners is acquiring the business in partnership with Stefano Pessina and his family, who have reinvested 100% of their interests in Walgreens. This demonstrates their ongoing support and confidence in the company's future, according to WBA.
"This milestone begins a new chapter for Walgreens, The Boots Group and the other portfolio businesses," Stefano Pessina said by statement. "Our family has proudly supported these companies for decades, and we are pleased to continue that commitment alongside Sycamore."
WHY THIS MATTERS
The acquisition, first announced in March, means the continuation of Walgreens and other Walgreens Boots Alliance businesses.
Mike Motz has been appointed CEO of Walgreens. Motz was formerly CEO of Staples US Retail, a Sycamore portfolio company, according to Seeking Alpha.
Motz replaces Tim Wentworth, who will continue to serve as an ongoing director.
John Lederer, a former director of Walgreens Boots Alliance and a senior advisor to Sycamore, has been appointed executive chairman of Walgreens.
WBA's last trading day was Wednesday, Aug. 27. The company's common stock will no longer be listed on the Nasdaq.
In addition to their cash consideration of $11.45 per WBA share, WBA shareholders will receive one nontransferable right to receive up to an additional $3 in cash from the process of selling the company's primary care assets, including VillageMD, Village Medical, Summit Health and CityMD.
THE LARGER TREND
In July, Walgreens shareholders voted to approve the company's sale to Sycamore Partners in a merger, estimated at $23.7 billion.
When the initial merger announcement was made March 6, WBA shareholders were estimated to receive $11.45 per share in cash at closing, along with the one nontransferable divested asset proceeds right to receive up to an additional $3 in cash per share from the future monetization of WBA's debt and equity interests in VillageMD.
ON THE RECORD
Stefan Kaluzny, managing director of Sycamore, said, “Walgreens Boots Alliance, Inc., 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, including Walgreens, The Boots Group, Shields Health Solutions, CareCentrix and VillageMD. 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.”
Email the writer: SMorse@himss.org