[Ip-health] US drug store giant Walgreens in Boots deal
Riaz K Tayob
riaz.tayob at gmail.com
Tue Jun 19 04:45:39 PDT 2012
US drug store giant Walgreens in Boots deal
Tuesday 19 June 2012
The largest drug store chain in the US has signed a $6.7bn (£4.3bn) deal
to take a 45% stake in Alliance Boots and could take full control by 2015.
Walgreens, which also trades as Duane Reade, said the strategic
partnership with high street chain Boots, which is the market leader in
Europe, will create the first global pharmacy business, with 11,000
stores in 12 countries.
The cash and shares deal will also create the world's largest purchaser
of prescription drugs and the biggest pharmaceutical and wholesale
The partnership will deliver to more than 170,000 pharmacies, doctors,
health centres and hospitals in 21 countries.
The tie-up will bring together an "unparalleled portfolio" of retail
businesses and brands, by combining the Alliance Healthcare, Boots, No7
and Botanics brands with the Walgreens and Duane Reade names.
Alliance Boots executive chairman Stefano Pessina said the deal offers
significant growth opportunities and marks "a very positive milestone
for the healthcare industry as a whole".
He added that the fit between the two companies was "natural" because
Walgreens' profile in the US was similar to its own in the UK, where it
operates more than 2,500 stores.
Alliance Boots was taken private in an £11.1bn takeover in 2007 by
private equity firm KKR and Mr Pessina. It employs around 75,000 staff
in the UK.
The stores will continue to operate under their existing brands. The
companies said they have no plans to make any redundancies because the
two businesses complement each other.
Alliance Boots is committed to keeping its current support offices
across Europe as well as its operational hub in Nottingham.
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