DEERFIELD, Ill., 2016-Aug-27 — /EPR Retail News/ — Walgreens Boots Alliance, Inc. (Nasdaq: WBA) today (25 August 2016) announced that it had agreed with AmerisourceBergen Corporation (NYSE: ABC) to amend the second tranche of warrants held by Walgreens Boots Alliance to purchase AmerisourceBergen common stock, so as to permit the immediate exercise of these warrants. The warrants were originally scheduled to be exercisable in March 2017.
Walgreens Boots Alliance then exercised these warrants and purchased 22,696,912 shares of AmerisourceBergen common stock for an aggregate payment of approximately $1.19 billion. The transaction was funded using existing cash on hand.
“Today’s announcement builds on the strong and collaborative working relationship our companies have built together, and further strengthens the long-term strategic relationship we launched in 2013,” said Executive Vice Chairman and CEO Stefano Pessina. “Since the beginning of the strategic relationship, we have worked together with AmerisourceBergen to improve the customer experience by delivering the right products at the right time to ensure that we are able to provide exceptional patient access and care in our U.S. pharmacy operations.”
With today’s exercise of these warrants, Walgreens Boots Alliance now beneficially owns 56,854,867 shares of AmerisourceBergen common stock, or 23.9 percent of AmerisourceBergen’s outstanding equity (based on shares outstanding as of 31 July 2016, adjusted to give effect to the exercise of these warrants).
Walgreens Boots Alliance intends to continue to account for its investment in AmerisourceBergen using the equity method of accounting, subject to a two-month lag, with the net earnings attributable to its investment being classified within the operating income of the company’s Pharmaceutical Wholesale segment.
Notes to Editors:
About Walgreens Boots Alliance
Walgreens Boots Alliance (Nasdaq: WBA) is the first global pharmacy-led, health and wellbeing enterprise.
The company was created through the combination of Walgreens and Alliance Boots in December 2014, bringing together two leading companies with iconic brands, complementary geographic footprints, shared values and a heritage of trusted health care services through pharmaceutical wholesaling and community pharmacy care, dating back more than 100 years.
Walgreens Boots Alliance is the largest retail pharmacy, health and daily living destination in the USA and Europe and, together with its equity method investments*, employs more than 370,000* people and has a presence in more than 25* countries. Walgreens Boots Alliance is a global leader in pharmacy-led, health and wellbeing retail with over 13,100* stores in 11* countries. The company includes one of the largest global pharmaceutical wholesale and distribution networks with over 350* distribution centers delivering to more than 200,000** pharmacies, doctors, health centers and hospitals each year in 19* countries. In addition, Walgreens Boots Alliance is one of the world’s largest purchasers of prescription drugs and many other health and wellbeing products.
The company’s portfolio of retail and business brands includes Walgreens, Duane Reade, Boots and Alliance Healthcare, as well as increasingly global health and beauty product brands, such as No7, Botanics, Liz Earle and Soap & Glory.
* As at 31 August 2015 (without subsequent adjustment for business acquisitions or dispositions), including equity method investments
** For 12 months ended 31 August 2015 (without subsequent adjustment for business acquisitions or dispositions), including equity method investments
Cautionary Note Regarding Forward-Looking Statements: All statements in this release that are not historical are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are not guarantees of future performance and involve risks, assumptions and uncertainties, including those described in Item 1A (Risk Factors) of our Form 10-K for the fiscal year ending 31 August 2015 and our Form 10-Q for the fiscal quarter ended 31 May 2016, which are incorporated herein by reference, and in other documents that we file or furnish with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially. These forward-looking statements speak only as of the date they are made. Except to the extent required by law, we do not undertake, and expressly disclaim, any duty or obligation to update publicly any forward-looking statement after the date of this release, whether as a result of new information, future events, changes in assumptions or otherwise.
Contacts:
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+1 847 315 2920
International:
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+44 (0)207 980 8585
Investor Relations:
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+1 847 315 2922
Source: Walgreens Boots Alliance, Inc.