Based in 2011, Sycamore makes a speciality of client, distribution and retail firms and has raised about $10 billion. Amongst its different present and previous investments are Staples, division retailer operator Belk and attire retailer Scorching Matter.

“Sycamore has deep respect for WBA’s gifted and devoted staff 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 position in driving higher outcomes for sufferers, clients and communities.”

Nonetheless up within the air is the long run is for Walgreens’ healthcare service belongings, 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 staff mentioned final yr 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 once they occur. And whereas executives are assuming they’ll promote belongings in sure markets this yr, buyers shouldn’t count on a hearth sale.

Of their deal announcement, Walgreens and Sycamore mentioned that quite a lot 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 steadiness sheet of the companies, forward of any future monetization transaction or transactions.”