Walgreens Boots Alliance plans to promote its pharmacy wholesale enterprise to AmerisourceBergen for $6.5 billion, the businesses introduced on Wednesday.
The transaction will embody $6.27 billion in money and a pair of million shares of AmerisourceBergen’s inventory.
Walgreens will promote most of its Alliance Healthcare enterprise, one of many largest pharmaceutical wholesalers in Europe. AmerisourceBergen CEO Steven Collis mentioned the deal would increase the corporate’s attain and add to the breadth and depth of its international manufacturing companies. In fiscal yr 2020, Walgreens’ wholesale enterprise introduced in roughly $19 billion in income.
In flip, Walgreens plans to pour funds from the deal into retail pharmacy enterprise, in addition to its healthcare efforts. Like different retailers, Walgreens can be attempting to maneuver extra into main care. It struck a partnership over the summer time with main care startup VillageMD, with plans to speculate $1 billion within the firm and open 500 to 700 clinics hooked up to its shops within the subsequent 5 years.
Walgreens CEO Stefano Pessina mentioned the deal was a “logical step,” on condition that Walgreens and AmerisourceBergen have been companions since 2013. The Pennsylvania-based wholesaler provides a big quantity of generic and branded medicine to Walgreens’ pharmacies. Walgreens can be AmerisourceBergen’s largest shareholder, with a 30% stake.
“This strategic settlement with AmerisourceBergen, which we think about to be the world’s main pharmaceutical wholesaler, is a really optimistic improvement for the 2 corporations,” he mentioned in a information launch.
Walgreens mentioned it plans to increase its strategic partnership with AmerisourceBergen by means of 2029.
Picture credit score: Joe Raedle, Getty Photographs