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What company did Walgreens merge with?

Published in Pharmacy Merger 2 mins read

Walgreens merged with Alliance Boots, an international pharmacy-led health and beauty group. This strategic transaction led to the formation of Walgreens Boots Alliance.

The deal was finalized on December 31, 2014, when Walgreens acquired the remaining 55% stake in Alliance Boots that it did not already own. This full acquisition completed a two-step process that began several years prior.

Formation of Walgreens Boots Alliance

The integration of Walgreens and Alliance Boots created the first global pharmacy-led health and wellbeing enterprise. This move significantly expanded Walgreens' international footprint and diversified its business portfolio.

Key Aspects of the Acquisition

The completion of the merger was a significant event in the retail pharmacy industry. Here's a breakdown of the key details:

Aspect Detail
Companies Involved Walgreens (now a subsidiary of Walgreens Boots Alliance) and Alliance Boots GmbH
Formation Date December 31, 2014
Nature of Deal Walgreens bought the remaining 55% stake in Alliance Boots it did not already own, completing a full acquisition.
Transaction Value The total acquisition price was $4.9 billion in cash and 144.3 million common shares with a fair value of $10.7 billion.
Resulting Entity Walgreens Boots Alliance

Impact of the Merger

The formation of Walgreens Boots Alliance had several strategic implications:

  • Global Reach: It established a strong presence in various markets beyond the United States, including Europe, Asia, and Latin America.
  • Enhanced Scale: The combined entity gained immense purchasing power and operational efficiencies.
  • Diversified Portfolio: It brought together retail pharmacy operations, pharmaceutical wholesale, and product manufacturing and distribution.
  • Innovation: The merger aimed to leverage the combined expertise in healthcare delivery, technology, and patient care.

This integration solidified Walgreens Boots Alliance's position as a leading player in the global health and beauty sector.