AmerisourceBergen has completed its nearly $6.3 billion acquisition of Walgreens' Alliance Healthcare, one of Europe's largest drug wholesalers.
Amerisource will pay $6.27 billion in cash and turn over 2 million shares of its common stock in the deal, the wholesale giant announced this week. The companies said they also plan to expand and extend other commercial agreements to drive further growth and synergy.
“We are excited to complete the acquisition and extend a warm welcome to the talented team at Alliance Healthcare,” said Steven H. Collis, CEO of AmerisourceBergen, in a statement.
“The acquisition of Alliance Healthcare expands our reach and solutions in pharmaceutical distribution and adds to AmerisourceBergen’s breadth and depth of global manufacturer services. With Alliance Healthcare, we will advance our ability to provide innovative and global healthcare solutions and further our purpose of being united in our responsibility to create healthier futures," Collis said.
The deal will grow AmerisourceBergen's distribution network globally. The acquisition does exclude Alliance's businesses in Germany, Italy and China.
Walgreens said it will use the funds from the acquisition to cut down its debts, and that a portion of the funds has wiped $3.3 billion off of the balance sheet. The remainder of the funds will be used to accelerate the pharmacy giant's growth strategy.
“Completion of this transaction represents a significant step forward in our transformation and will fuel investments to grow WBA’s core retail pharmacy and healthcare businesses,” said Rosalind Brewer, CEO of Walgreens Boots Alliance, in a statement. “Through these and other investments, WBA looks to bring even more innovative healthcare offerings to our customers and patients, as we further accelerate our strategic priorities.”