Walgreens goes international with $6.7 billion Alliance Boots buy
Walgreens will buy a 45% stake in Europe's Alliance Boots pharmacy chain. The $6.7 billion deal between the largest U.S. drugstore chain and Europe's biggest pharmacy-beauty retailer would create the "first global pharmacy-led, health and wellbeing enterprise," according to a prepared statement from Walgreens. It also could garner Walgreens control of Boots by 2015.
Walgreens will pay $4 billion in cash and $2.7 billion in stock, with an option to buy the remaining stake for an additional $9.5 billion, subject to stock and currency fluctuations.
"We are bringing together the strengths and expertise of each company to create a worldwide health care platform for the future that can provide innovative ways to address global health-and-wellness challenges," said Gregory Wasson, president and CEO of Walgreens, in a prepared statement. "Together we will be ideally positioned to expand our customer offerings in our existing markets and become the health-and-well-being partner of choice in emerging markets."
Italian billionaire Stefano Pessina bought Alliance Boots for $22 billion in 2007 with investment firm Kohlberg Kravis Roberts (now KKR). Walgreens, with nearly 8,000 drugstores across all 50 states, posted $72 billion in sales last year. Meanwhile, Alliance Boots, which operates some 3,330 stores in about 25 countries, posted roughly $39.4 billion in sales, including joint ventures.
Westport, CT Saugatuck Commercial Real Estate’s (SCRE) Dan Neaton has represented Boot Barn in leasing its fifth Connecticut retail location. The nation’s western and workwear retailer has finalized a lease for a 14,600 s/f space at 581 Hartford Pke., situated within the Killingly Commons shopping center.
Now what? As the year comes to a close, the state of retail is always in the news. The answers vary greatly depending on who in the various related industries you ask, each offering a unique lens on the challenges and opportunities ahead.
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