Boots owner sells healthcare business for £4.8bn

Boots owner Walgreens Boots Alliance is selling most of its healthcare business to AmerisourceBergen for £4.8 billion ($6.5 billion.)

Boots will be impacted by the acquisition, while Walgreens' operations in China, Italy, and Germany are not involved in the transaction.

The move is part of Walgreens’ aim to increase its focus on expanding its core retail pharmacy business.

While the two businesses have decided on a new US distribution agreement, it’s been confirmed that Alliance Healthcare UK will remain the distribution partner of Boots until 2031.

“This strategic agreement with AmerisourceBergen, which we consider to be the world’s leading pharmaceutical wholesaler, is a very positive development for the two companies,” said Stefano Pessina, executive vice chairman and chief executive, Walgreens Boots Alliance. “This deal will enable significant value creation for both companies and will generate new synergies in addition to those already captured. It is a logical step following the success of our long-term strategic relationship with AmerisourceBergen which has been a strong and trusted partner since 2013.

“The transaction will fuel higher future investments to grow and transform our core retail pharmacy and healthcare businesses, and is EPS accretive long-term for Walgreens Boots Alliance.”

The transaction is expected to complete this year.

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