Walgreens has officially completed its $10 billion acquisition by Sycamore Partners, marking the end of the company’s time as a publicly traded firm. Alongside the transaction, Walgreens announced that former Staples executive Mike Motz would take over as CEO, succeeding Tim Wentworth.
Shareholders had approved the buyout last month, following the initial agreement in March. The company, which has been grappling with shrinking prescription reimbursements, theft, and higher operating costs, said that operating as a private entity will allow it to make strategic changes without the pressure of Wall Street expectations.
Walgreens has already outlined major restructuring moves, including the closure of 1,200 stores out of its 8,500 U.S. locations and the suspension of its dividend, which had been paid for more than 90 years. Once a Dow Jones component, the Deerfield, Illinois-based chain saw its shares close at $11.98 on Wednesday—well below the $97 peak reached a decade ago despite a 28% gain earlier this year.
Source: CBS News
