AmerisourceBergen has announced it has reached a deal with Walgreens Boots Alliance to acquire its Alliance Healthcare Businesses for $6.5 billion. The deal consists of a massive cash payment of $6.275 billion and a much smaller stock payment of 2 million AmerisourceBergen Shares.
Walgreens is selling off the business in an effort to increase focus on the company’s core retail pharmacy business. As part of the deal, the two healthcare giants announced that they would extend their U.S. distribution agreements and pursue opportunities for greater cooperation in the future.
The two businesses are already closely tied, as Walgreens Boots Alliance is AmerisourceBergen’s largest shareholder, with a roughly 30% stake in the company.
The businesses being sold generated roughly $19 billion in revenue in 2020 and adjusted EBITDA of $540 million. AmerisourceBergen expects synergies of $75 million per year by its fourth owning the Alliance Healthcare Businesses