Walgreens Boots alliance and AmerisourceBergen Report Strategic Transaction | Financial Buzz

Walgreens Boots alliance and AmerisourceBergen Report Strategic Transaction

Walgreens Boots Alliance, Inc. (NASDAQ: WBA) and AmerisourceBergen Corporation (NYSE: ABC) reported a strategic agreement where AmerisourceBergen will acquire the majority of Walgreens Boots Alliance’s Alliance Healthcare businesses for approximately USD 6.5 Billion, USD 6.275 Billion in cash and 2 million shares of AmerisourceBergen common stock.  The acquisition of Alliance Healthcare will allow for even stronger support for pharmacies and pharmacists across the globe and integrated solutions for pharmaceutical manufacturers.  Walgreen Boots Alliance may increase its focus on expanding its core retail pharmacy businesses to bring greater healthcare offerings to patients and customers and further accelerating its progress on its strategic priorities.  The two companies have also agreed to extend and expand their commercial agreements.  The United States distribution agreement will extend by three years until 2029 and their partnership to be expanded to include a commitment to venture into opportunities in sourcing and distribution.  Alliance Healthcare UK will remain distribution partner of Boots until 2031. 

“This strategic agreement with AmerisourceBergen, which we consider to be the world’s leading pharmaceutical wholesaler, is a very positive development for the two companies. This deal will enable significant value creation for both companies and will generate new synergies in addition to those already captured. It is a logical step following the success of our long-term strategic relationship with AmerisourceBergen which has been a strong and trusted partner since 2013,” said Stefano Pessina, Executive Vice Chairman and CEO, Walgreens Boots Alliance. “The transaction will fuel higher future investments to grow and transform our core retail pharmacy and healthcare businesses, and is EPS accretive long-term for Walgreens Boots Alliance.”

“AmerisourceBergen’s vital role in the health system as a key pillar of pharmaceutical innovation and access has been on full display over the past year,” said Steven Collis, Chairman, President & Chief Executive Officer of AmerisourceBergen. “AmerisourceBergen’s financial and strategic position enable this next evolution of enhancing our ability to provide healthcare capabilities across regions and deliver innovative solutions for our upstream and downstream partners. Today’s announcements will expand our reach and solutions in pharmaceutical distribution and add to AmerisourceBergen’s breadth and depth of global manufacturer services, supporting our ability to create differentiated value for all our stakeholders. I look forward to extending and expanding our successful partnership with Walgreens Boots Alliance and welcoming the industry-leading team at Alliance Healthcare to AmerisourceBergen. Together, we will fulfill AmerisourceBergen’s purpose of being united in our responsibility to create healthier futures.”