All Access

Biotech Deals

Biotech Deals Alert

Alert

topics

politics-policy

epstein-files

donald-trump

2026-midterm-elections

immigration

behind-the-curtain

race-and-equity

technology

privacy-tech-regulation

automation-and-ai

tiktok-news

big-tech

social-media

cybersecurity

economy

social-security

inflation

tariffs

federal-reserve

jobs

transportation

business

stock-market-news

retail-news

crypto

media

elon-musk

dealmaking

health

rfk-jr

drug-prices

axios-explains-abortion

public-health

world

israel

axios-explains-ukraine

iran

russia

china

energy-climate

nuclear-energy

climate-energy-policy

climate-change

extreme-weather

alternative-energy

electric-vehicles

science

emerging-tech

biomedicine

newsletters

pittsburgh

atlanta

san-diego

charlotte

boulder

washington-dc

kansas-city

dallas

denver

detroit

des-moines

austin

boston

chicago

cleveland

columbus

houston

indianapolis

miami

nashville

new-orleans

nw-arkansas

philadelphia

phoenix

portland

richmond

salt-lake-city

san-antonio

san-francisco

seattle

tampa-bay

twin-cities

raleigh

huntsville

axios-local

axios-pro

axios-live

the-axios-show

Walgreens closed its deal with Sycamore Partners today as it appears set to abandon its health care delivery strategy.

Why it matters: Walgreens spent billions in recent years buying health assets, attempting to offer primary care.

Sycamore Partners didn't share its strategy for Walgreens, but the smart money is that it will seek to get out of health-care delivery.

Between the lines: "[Sycamore's] playbook is to acquire a struggling retailer ... strip away the distractions, focus on the core business and then rebuild profitability outside of the spotlight," says Kate Festle, a partner at West Monroe.

Sycamore said that Walgreens; health care assets Shields Health Solutions, CareCentrix and VillageMD; and Boots Group all will be standalone units.

 Zoom in: Mike Motz was named Walgreens CEO  — signaling the retail pharmacy chain hopes to return to its roots of dispensing prescriptions, alongside selling shampoo, toothpaste and snacks.

Motz was previously president of Canada's Shoppers Drug Mart but was most recently CEO of Staples, another Sycamore-owned company.

"It's somebody Sycamore has dealt with," says University of Michigan business professor Erik Gordon. "They trust his judgment. They know his style."

Winners: "It's terrific for investment bankers, because they make huge fees when you're buying the companies, and then they make huge fees when you're selling the companies," Gordon says.

Losers: By the time Walgreens announced the Sycamore deal in March, 90% of shareholder value had been lost since 2015, when its valuation hit $100 billion.

What we're watching: Sycamore may try to sell off the lingering WBA assets, such as Shields or CareCentrix, to a strategic buyer or private equity firm, Festle says.

"If you're just buying the pieces ... that becomes a manageable size for private equity investment," she adds.

Several industry bankers tell Axios Pro that Shields would see a rich valuation in the event of a sale.

"(Sponsor-backed) strategic buyers out there very much would look at that asset," one banker notes, citing UnitedHealth-owned CPS Solutions as a logical prospective bidder.

The bottom line: The dismembering of Walgreens Boots Alliance is a sour chapter for a storied brand that had operated as a public company for nearly 100 years.

Editor's note: This story has been corrected to note that CPS Solutions is owned by UnitedHealth (not backed by Bain and Audax).

Walgreens appears to unwind costly primary care push

The pharmacy retail business is now a standalone business.

Illustration of tape over a cracked Walgreens mortar and pestle logo.

Walgreens <a class="gtmContentClick" data-vars-link-text="closed its deal" data-vars-click-url="https://www.axios.com/2025/08/28/walgreens-private-sycamore" data-vars-content-id="7b1f3ea2-8659-4fab-9a0f-32ae181edc3b" data-vars-headline="Walgreens appears to unwind costly primary care push" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/2025/08/28/walgreens-private-sycamore" target="_self">closed its deal</a> with Sycamore Partners today as it appears set to abandon its <a class="gtmContentClick" data-vars-link-text="health care delivery strategy" data-vars-click-url="https://www.axios.com/pro/health-tech-deals/2024/11/04/walgreens-rocky-road" data-vars-content-id="7b1f3ea2-8659-4fab-9a0f-32ae181edc3b" data-vars-headline="Walgreens appears to unwind costly primary care push" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/pro/health-tech-deals/2024/11/04/walgreens-rocky-road" target="_self">health care delivery strategy</a>.Why it matters: Walgreens spent billions in recent years buying health assets, attempting to offer primary care.

Walgreens appears to unwind costly primary care push

What to read next