Walgreens Names New CEO as Company Goes Private

Walgreens Boots Alliance is officially privately held with a new chief executive who formerly ran office supply retailer Staples. The announcement coincides with the closing of the company’s $10 billion sale to private equity firm Sycamore Partners. Sycamore is acquiring the business in partnership with Stefano Pessina, who has been the company’s largest individual shareholder and former CEO, and his family, “who have reinvested 100 percent of their interests in WBA, demonstrating their ongoing support and confidence in the company’s future,” the companies said last week.

Walgreens has named Mike Motz its new CEO, effective immediately. He was formerly CEO of Staples US Retail, a Sycamore portfolio company. Motz replaces Tim Wentworth, who has run Walgreens for the last two years.

Total Retail's Take: Motz has experience in the pharmacy sector, having served as president of Shoppers Drug Mart, the No. 1 pharmacy chain in Canada. He's a seasoned leader with deep experience, who will bring a renewed focus on retail, a customer-first mindset and significant operational discipline to guide Walgreens into its next chapter as a private company, according to a company press release announcing Motz's appointment.

There figures to be plenty of change at Walgreens under Motz's leadership. As a private company operating outside of public market scrutiny, it's likely the retailer will seek to accelerate its turnaround efforts, including potential store closures, spinning off healthcare units such as VillageMD, and streamlining operations to cut costs and regain profitability. Motz will be expected to lead Walgreens through this challenging period into an era of profitability.