Walgreens completes $6.5 billion wholesale pharmacy sale to AmerisourceBergen

Picture: Walgreens/Courtesy Walgreens

Walgreens Boots Alliance has announced it has done the sale of its Alliance Healthcare wholesale pharmacy enterprise to AmerisourceBergen for $6.5 billion.

The sale contains $6.275 billion in dollars and two million shares of AmerisourceBergen prevalent stock. 

The firm explained it will use the dollars to decrease credit card debt and accelerate advancement of its core retail pharmacy and healthcare corporations.

Walgreens has applied a part of the cash to repay the exceptional quantity owed on a $three.eight billion term financial loan. This has eliminated $three.three billion in credit card debt from the company’s equilibrium sheet. 

WHY THIS Matters

The sale permits Walgreens to aim on its retail pharmacy and healthcare enterprise, such as strategic moves into primary treatment.

Hard cash remaining right after the elimination of credit card debt will be invested in the growth of healthcare choices to aid accelerate the company’s advancement system, Walgreens explained.

These investments will additional build on previously announced initiatives, such as its investment in VillageMD to assist the opening of 600 to 700 Village Medical at Walgreens primary treatment clinics, as nicely as the acquisition of a vast majority stake in iA, a main-edge service provider of application-enabled pharmacy automation answers.

WBA and AmerisourceBergen will also execute on the growth and extension of industrial agreements that are envisioned to push incremental advancement and synergies, Walgreens explained.

THE Larger sized Trend

The organizations announced the sale in January. 

The sale permits Walgreens to move forward on its growth of retail pharmacy and healthcare. The deal with VillageMD is to open up five hundred to seven-hundred clinics in Walgreens locations above the upcoming 5 a long time.

Walgreens explained late previous year that it planned to open up 40 new whole-provider primary treatment models by the conclusion of this summer season.

As a single of the most significant pharmaceutical wholesalers in Europe, Alliance Healthcare will develop AmerisourceBergen’s wholesale, distribution and relevant enterprise, eventually expanding the breadth and depth of its international maker expert services, AmerisourceBergen President and CEO Steven Collis explained in the announcement.

ON THE History

“Completion of this transaction represents a sizeable stage forward in our transformation and will fuel investments to develop WBA’s core retail pharmacy and healthcare corporations,” explained Rosalind Brewer, CEO of Walgreens Boots Alliance. “As a result of these and other investments, WBA looks to bring even extra impressive healthcare choices to our customers and patients, as we additional accelerate our strategic priorities.”

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