Walgreens, Allied Boots Strike Deal
From UPI Business News (June 19, 2012)
U.S. pharmacy chain Walgreens said Tuesday it would buy 45 percent of Alliance Boots, the largest pharmacy chain in Europe, for $6.7 billion.
The deal includes $4 billion in cash and 82.4 million Walgreens shares, the companies said in a statement.
The companies said the combined firm would have 11,000 retail outlets in 12 countries, creating "the largest global pharmaceutical wholesale and distribution network."
That network would have 370 distribution centers delivering pharmaceutical products to 170,000 locations, including pharmacies, health centers, doctor’s offices and hospitals.
The deal positions the company to take further steps for growth, especially in developing countries, the statement said.
"By focusing on our key strategies, we are positioning ourselves to be the first choice for health and daily living," said Walgreens President and Chief Executive Officer Greg Wasson.
The agreement includes a three-year option for Walgreens to buy the remaining 55 percent of Alliance Boots, which has its headquarters in Zug, Switzerland.
The second part of the deal would be valued at $9.5 billion and would include the assumption of Alliance Boots’ outstanding debt.
Posted: June 2012