Walgreens replaces CEO and splits up after Sycamore acquisition

Walgreens replaced its chief executive officer after being acquired by the private equity company Sycamore Partners on Thursday.

The business has also separated into parts that will operate as independent companies, according to a news release, Walgreens is the well-known U.S. retail pharmacy. The other businesses are the Boots Group, Shields Health Solutions, CareCentrix, and VillageMD.

Mike Motz, former CEO of Staples U.S. Retail, another Sycamore company, is the new CEO of Walgreens, according to a company statement. Tim Wentworth, who previously served as the CEO of Walgreens Boots Alliance Inc., which encompassed all the businesses, will be a director of the separated retail pharmacy unit.

Sycamore declined to comment on Wentworth’s change of role. Walgreens declined to make anyone available for an interview.

Walgreens agreed to be purchased by Sycamore in March in a $10 billion deal at a tumultuous time for U.S. retail pharmacies, which have been struggling with declining prescription reimbursements and increased competition from online retailers.