Walgreen Co. completes its acquisition of Alliance Boots GmbH
December 31, 2014 11:03 AM
Two of the biggest players in the online pharmacy game completed their merger this week.
Walgreen Co. announced it has acquired the remaining 55% of European pharmacy retail giant Alliance Boots GmbH for 3.133 billion pounds ($4.88 billion) and more than 144 million shares of common stock. The two companies will operate under the new Walgreens Boots Alliance Inc. umbrella. The newly merged company will be headquartered in Deerfield, IL. Walgreen Co. is No. 43 in the Internet Retailer Top 500 Guide while Alliance Boots GmbH is No. 87 in the Europe 500.
It’s a merger that took root back in 2012, when Walgreens bought a 45% stake in Alliance Boots for a reported $6.7 billion in an effort to expand the brand’s global reach. The two retailers combined to do an Internet Retailer-estimated $1.32 billion in web sales last year. Walgreens has been at the forefront when it comes to incorporating mobile technology into its brick-and-mortar retail locations, having been among the first major retailers to allow customers to pay using Apple Pay.
"The combination instantly establishes a groundbreaking and game-changing new company that will help people across the world lead healthier and happier lives as we advance our industry and the delivery of retail health, wellbeing and beauty products and services worldwide,” says Greg Wasson, Walgreens current president and CEO.
Under the terms of the merger, Wasson will be retiring from the company, with Alliance Boots executive chairman Stefano Pessina taking over as acting CEO of the newly merged company.