Based in 2011, Sycamore focuses on client, distribution and retail corporations and has raised about $10 billion. Amongst its different present and previous investments are Staples, division retailer operator Belk and attire retailer Sizzling Subject.
“Sycamore has deep respect for WBA’s proficient and devoted group members, and we’re dedicated to stewarding the corporate’s iconic manufacturers,” Stefan Kaluzny, a managing director of Sycamore Companions, mentioned. “This transaction displays our confidence in WBA’s pharmacy-led mannequin and important function in driving higher outcomes for sufferers, prospects and communities.”
Nonetheless up within the air is the longer term is for Walgreens’ healthcare service property, led by its 53% stake in Village MD, the entity that controls the Village Medical clinic chain in addition to Summit Well being and CityMD. Wentworth and his group mentioned final 12 months that they deliberate to promote a minimum of a part of that enterprise—which completed 2024 with an adjusted EBITDA lack of $141 million on $6.4 billion in income—to refocus Walgreens on its core pharmacy work.
The Sycamore transaction is structured to additionally pay Walgreens shareholders as much as $2.7 billion from a number of Village MD offers if and after they occur. And whereas executives are assuming they’ll promote property in sure markets this 12 months, buyers shouldn’t anticipate a fireplace sale.
Of their deal announcement, Walgreens and Sycamore mentioned that a wide range of paths ahead stay on the desk. A committee of administrators will, they added, look to maximise Walgreens’ worth in varied methods, “together with actions to considerably improve operational efficiency and strengthen the stability sheet of the companies, forward of any future monetization transaction or transactions.”
