© Reuters. The emblem of Walgreens is seen at their Instances Sq. retailer in New York
(Reuters) – U.S. drug wholesaler AmerisourceBergen (NYSE:) Corp mentioned on Wednesday it might purchase Walgreens Boots Alliance (NASDAQ:)’s drug distribution enterprise for $6.5 billion to develop in Europe.
The deal will assist Walgreens focus extra on core pharmacy unit in addition to its retail enterprise, the place gross sales have tanked as a result of COVID-19 pandemic, leading to a virtually 30% hunch in shares in 2020.
AmerisourceBergen pays the debt-laden pharmacy chain $6.27 billion in money and ship 2 million of its frequent inventory at closing of the transaction. With a 30% stake, Walgreens is the biggest shareholder of AmerisourceBergen.
Walgreens’ unit, Alliance Healthcare, is likely one of the largest drug distributors in Europe. The deal is not going to embody operations in China, Italy and Germany and Alliance Healthcare UK will stay a associate of Walgreens’ nation unit till 2031.
Reuters reported in Might final yr that AmerisourceBergen had approached Walgreens to discover a deal for the corporate’s drug distribution enterprise.
Walgreens had in 2019 explored going personal and held preliminary discussions with personal fairness corporations, individuals conversant in the matter mentioned on the time.
The corporate has an settlement to supply branded and generic medication from AmerisourceBergen in the US. The businesses mentioned their U.S. distribution settlement might be prolonged by three years till 2029.
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