Walgreens Boots Alliance in $6.5 Billion Strategic Transaction
January 6, 2021
Cleary Gottlieb is representing Walgreens Boots Alliance (NASDAQ: WBA) in the $6.5 billion strategic transaction with AmerisourceBergen Corporation (NYSE: ABC).
The transaction was announced on January 6, 2021.
The principal components of the transaction are ABC’s acquisition of the WBA’s Alliance Healthcare wholesale distribution business in the UK, France, Turkey, Spain, the Netherlands, Norway, Romania, Czech Republic, and Lithuania for $6.275 billion in cash and 2 million shares of ABC stock; an extension of the existing distribution agreement between ABC and WBA; an extension of the arrangement pursuant to which ABC has access to generic drugs and related pharmaceutical products through the Walgreens Boots Alliance Development joint venture; a distribution agreement pursuant to which ABC will supply branded and generic pharmaceutical products to WBA’s Boots UK Ltd. following the closing of ABC’s acquisition of the wholesale distribution business; and an agreement to explore a series of strategic initiatives designed to create incremental growth and efficiency in sourcing, logistics, and distribution.
WBA is a global leader in retail and wholesale pharmacy, touching millions of lives every day through dispensing and distributing medicines, its convenient retail locations, digital platforms, and health and beauty products. The company has more than 100 years of trusted health care heritage and innovation in community pharmacy and pharmaceutical wholesaling. Including equity method investments, WBA has a presence in more than 25 countries, employs more than 440,000 people, and has more than 18,750 stores.
ABC provides pharmaceutical products, value-driving services, and business solutions that improve access to care. Tens of thousands of healthcare providers, veterinary practices, and livestock producers trust ABC as their partner in the pharmaceutical supply chain.