New CEO, New Strategy: Walgreens Goes Private and Readies Revamp in $10B PE Deal

Private equity firm Sycamore Partners has taken Walgreens private in a roughly $10 billion deal, installing a new CEO and splitting the 125-year-old company into five separate businesses to reverse a disastrous and costly foray into healthcare services.

• The new CEO: Retail veteran Mike Motz is taking the helm as CEO, bringing experience from his time as head of Sycamore-owned Staples U.S. Retail and president of Canadian pharmacy chain Shoppers Drug Mart. He replaces Tim Wentworth, who is stepping down after less than two years but will remain on the board as a director.

• Back to basics: The strategy is a hard pivot back to the company’s retail roots after spending billions on its failed VillageMD primary care venture. In a press release, Motz said the focus will be renewed on the "core pharmacy and retail platform," a move Sycamore’s leadership believes will allow the company to operate with "certainty, speed and focus."

• Financed with a catch: But the deal isn’t without its critics. It’s a classic leveraged buyout, saddling Walgreens with massive debt to finance its own acquisition. This structure has watchdog groups warning that it could starve the company of the cash needed to innovate and fend off competitors.

Sycamore is betting that a leaner, more focused Walgreens can thrive away from public market pressures, but the heavy debt load creates a high-stakes tightrope walk between operational efficiency and long-term investment.

• Also on our radar: The move comes as Walgreens faces intense competitive pressure from lower-cost rivals like Amazon and Walmart. For those wanting a deeper financial picture, the acquisition follows a period of heavy losses and a turnaround plan that includes closing 1,200 stores.