Walgreens-Alliance Boots deal sealed; senior leaders join respective boards

Deerfield, Ill. -- Walgreens and Alliance Boots on Thursday announced the completion of Walgreens initial investment in the strategic partnership following receipt of all required regulatory approvals.

The Walgreens investment consists of approximately $4 billion in cash and 83.4 million shares of Walgreens common stock in exchange for a 45% equity stake in Alliance Boots. Walgreens has the option to proceed to a full combination in approximately three years’ time by acquiring the remaining 55% of Alliance Boots.

As a result of the transaction, Alliance Santé Participations S.A., of which Alliance Boots executive chairman Stefano Pessina is a director and whose ultimate ownership is a family trust, becomes the largest shareholder of Walgreens, with a stake it intends to hold for the long term.

In line with this, Pessina and Dominic Murphy, member of the general partner of KKR & Co., have joined the Walgreens board. At the same time, Walgreens' president and CEO Greg Wasson; Wade Miquelon, executive VP and CFO; Thomas Sabatino, executive VP and general counsel; and Robert Zimmerman, senior VP and chief strategy officer, have become members of the Alliance Boots board.

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- 12:23 PM
charlotte b says

Predicted 10 years ago the evolution of Pharmacies with cosmetics and well-being. This will definitely expand the growth of cosmecetical which makes so much sense. Will be interesting to see how they match up with CVS. Love Walgreens...much more service and customer friendly.Wish them success.

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