Walgreens-Boots merger one step closer

Walgreens is poised to start 2015 off with a bang, as the company has nearly finalized its mega-deal with Alliance Boots.

Walgreens shareholders voted to approve all proposals related to the company’s acquisition of the remaining 55% of Alliance Boots that it does not currently own and the reorganization of the company into a holding company structure.

“This truly is an extraordinary time for Walgreens as we achieve our vision of becoming a pharmacy-led, global enterprise for health and well-being with Alliance Boots,” Walgreens president and CEO Greg Wasson said.

The transaction, set to close on Dec. 31, will fully combine the two companies to form the first global pharmacy-led, health and well-being enterprise. The companies launched a long-term strategic partnership in June 2012, when Walgreens acquired a 45% equity ownership in Alliance Boots, with the option to proceed to a full combination by acquiring the remaining 55% of Alliance Boots. Walgreens exercised the option to acquire the remaining 55% of Alliance Boots in August.

The reorganization will result in Walgreens becoming a wholly owned subsidiary of Walgreens Boots Alliance and shares of Walgreens common stock will be converted into shares of Walgreens Boots Alliance common stock on a one-for-one basis.

Walgreens Boots Alliance will be domiciled in the United States and headquartered in Deerfield, Ill. Shares of Walgreen Boots Alliance common stock will be listed on the Nasdaq Stock Market and will trade under the ticker symbol, WBA.

The news of the Alliance Boots vote comes as Walgreens reported a 16.4% lift in quarterly profit to $809 million for the first quarter ended Nov. 30. Net earnings per diluted share for the quarter increased 18.1% to 85 cents, compared with 72 cents per diluted share in the year-ago quarter.

“This quarter we had solid performance across both our pharmacy and retail products businesses,” Wasson said. “We truly appreciate that our 8,200-plus store teams exceeded the overall retail market in year-over-year sales growth heading into the holiday season, as we grew gross profit dollars faster than our costs during the quarter.”