Sycamore Partners closes Walgreens acquisition, splits retailer into 5 companies

Rumors of Walgreens’ sale swirled for months before it was announced in March, as the company’s core retail pharmacy business struggled and a pivot to offering healthcare services failed to yield the return on investment that executives expected.

Walgreens shareholders overwhelmingly approved the sale to Sycamore in July, after Wentworth said the firm might have the leadership expertise to help the retailer address mounting financial pressures head on.

Though Wentworth is being replaced as CEO, the executive will remain as an ongoing director, the company said. John Lederer, a former director of Walgreens and a senior advisor to Sycamore, has been named Walgreens’ executive chairman.

Walgreens also continued to carry high levels of debt ahead of the sale, reporting $429 million in short-term debt and nearly $7 billion in long-term debt in the nine-month period ending May 31.

Sycamore Partners’ portfolio includes several other retail brands, including Belk, Staples and Lane Bryant. The private equity firm does not have extensive exposure in healthcare.

Sycamore Partners closes Walgreens acquisition, splits retailer into 5 companies | Retail Dive

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