Walgreens-Alliance Boots deal sealed; senior leaders join respective boards

Deerfield, Ill. -- Walgreens and Alliance Boots on Thursday announced the completion of Walgreens initial investment in the strategic partnership following receipt of all required regulatory approvals.



The Walgreens investment consists of approximately $4 billion in cash and 83.4 million shares of Walgreens common stock in exchange for a 45% equity stake in Alliance Boots. Walgreens has the option to proceed to a full combination in approximately three years’ time by acquiring the remaining 55% of Alliance Boots.



As a result of the transaction, Alliance Santé Participations S.A., of which Alliance Boots executive chairman Stefano Pessina is a director and whose ultimate ownership is a family trust, becomes the largest shareholder of Walgreens, with a stake it intends to hold for the long term.



In line with this, Pessina and Dominic Murphy, member of the general partner of KKR & Co., have joined the Walgreens board. At the same time, Walgreens' president and CEO Greg Wasson; Wade Miquelon, executive VP and CFO; Thomas Sabatino, executive VP and general counsel; and Robert Zimmerman, senior VP and chief strategy officer, have become members of the Alliance Boots board.