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(Reuters) -U.S. drug wholesaler AmerisourceBergen Corp said on Wednesday it would buy Walgreens Boots Alliance’s distribution business for $6.5 billion to expand in Europe as well as to compete better in the U.S. healthcare sector.
FILE PHOTO: The logo of Walgreens is seen at their Times Square store in New York December 17, 2012. REUTERS/Andrew Kelly
The deal will help Walgreens focus more on core pharmacy unit and its retail business, where sales have tanked due to the COVID-19 pandemic, resulting in a nearly 30% slump in shares in 2020.
AmerisourceBergen will get access to Alliance Healthcare, one of the largest distributors in Europe that has weathered the impact of the global health crisis.
AmerisourceBergen To Acquire Majority Of Walgreens Alliance Healthcare Businesses
WASHINGTON (dpa-AFX) - AmerisourceBergen Corp. (ABC) and Walgreens Boots Alliance, Inc. (WBA) announced Wednesday strategic agreements under which AmerisourceBergen will acquire the majority of Walgreens Alliance Healthcare businesses for about $6.5 billion, comprised of $6.275 billion in cash and 2 million shares of AmerisourceBergen common stock.
The cash consideration is subject to a customary working capital and net-debt adjustment. The transaction has been approved by the AmerisourceBergen and Walgreens Boots Alliance Boards of Directors.
AmerisourceBergen expects to fund the cash purchase price through a combination of cash on hand and new debt financing.
The transaction, which is expected to close by AmerisourceBergen s fiscal year-end 2021, is subject to the satisfaction of customary closing conditions, including receipt of required regulatory approvals. Walgreens Boots Alliance s operatio
Walgreens Boots Alliance (WBA) has agreed a 6.5 billion-dollar (£4.8 billion) deal to sell the majority of its Alliance Healthcare wholesale and distribution business.
The Boots owner has said it agreed a deal to sell the business, previously called Alliance UniChem, to US drug wholesaler AmerisourceBergen.
It said the buyer will acquire the majority stake for 6.275 billion dollars in cash and two million AmerisourceBergen shares.
WBA told investors on Wednesday that the sale will allow it to increase its focus on its core retail pharmacy business.
It added that Alliance Healthcare UK will remain as Boots’s distribution partner until 2031, despite the sale.
AmerisourceBergen to buy Walgreens distribution unit in US$6.5 billion Europe push Toggle share menu
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AmerisourceBergen to buy Walgreens distribution unit in US$6.5 billion Europe push Drug distributor AmerisourceBergen Corp said on Wednesday it would buy Walgreens Boots Alliance s distribution business, Alliance Healthcare, for US$6.5 billion.
FILE PHOTO: The logo of Walgreens is seen at their Times Square store in New York December 17, 2012. REUTERS/Andrew Kelly
06 Jan 2021 08:22PM (Updated:
06 Jan 2021 09:35PM) Share this content
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REUTERS: U.S. drug wholesaler AmerisourceBergen Corp said on Wednesday it would buy Walgreens Boots Alliance s drug distribution business for US$6.5 billion to expand in Europe.