Walgreens Boots Alliance Acquired by Sycamore Partners

Private equity firm Sycamore Partners has completed the acquisition of Walgreens Boots Alliance, with the company now split into five independent businesses. WBA shareholders received $11.45 per share in cash and a contingent right to additional proceeds. Mike Motz has taken over as Walgreens CEO, succeeding Tim Wentworth, while Stefan Kaluzny, managing director of Sycamore, said the acquisition marks a new chapter for the company.

Private equity firm Sycamore Partners has finalized the acquisition of Walgreens Boots Alliance (WBA), marking a significant transaction in the retail pharmacy sector. The deal, announced in March 2025 and completed on August 28, 2025, involved Sycamore Partners Management, L.P. acquiring WBA from Stefano Pessina, his holding company, Alliance Santé Participations S.A., and others for $9.9 billion [1].

WBA shareholders received $11.45 per share in cash, representing a 29% premium over the closing share price of $8.85 on December 9, 2024. Additionally, shareholders have a contingent right to receive up to $3.00 in cash per share from the future monetization of WBA's debt and equity interests in VillageMD, including Village Medical, Summit Health, and CityMD businesses [1]. This contingent consideration could add up to approximately $2.7 billion in aggregate, making the total consideration up to $23.7 billion [1].

The acquisition has resulted in WBA being split into five independent businesses: The Boots Group, CareCentrix, Shields Health Solutions, VillageMD, and Walgreens. Mike Motz has taken over as Walgreens CEO, succeeding Tim Wentworth, who will remain an ongoing director. Stefan Kaluzny, managing director of Sycamore, stated that the acquisition marks a new chapter for the company, with each business building on its legacy to enhance customer experience and deepen relationships with millions of customers worldwide [2].

Stefano Pessina and his family have reinvested their entire stake in the retail company and will continue to support the businesses they have proudly supported for decades [2]. Pessina expressed his belief in the future of these organizations and their essential role in millions of lives daily.

The transaction, which was subject to customary closing conditions and approval by WBA shareholders, closed in the third or fourth quarter of 2025. Sycamore has received fully committed financing for the transaction, and the deal was advised by several financial and legal firms, including Centerview Partners, Kirkland & Ellis LLP, and Morgan Stanley & Co. LLC [1].

References:
[1] https://www.marketscreener.com/news/sycamore-partners-management-l-p-completed-the-acquisition-of-walgreens-boots-alliance-inc-from-s-ce7c50dcd98ff524
[2] https://finance.yahoo.com/news/sycamore-finalises-acquisition-walgreens-boots-094622795.html