KKR Sells Remaining Stake in Alliance Boots to Walgreens
January 02, 2015
KKR has sold its remaining stake in Alliance Boots to Walgreens Boots Alliance (NASDAQ: WBA), a new holding company created by Walgreens (NYSE: WAG). After initially acquiring a 45% stake in the pharmaceutical distributor in 2012, Walgreens exercised call options that entitled it to the remaining ownership interest. In exchange for the 55% stake, Walgreens gave sellers more than £3.1 billion in cash and over 144.3 million shares of common stock, which opened Wednesday at $76.54 to indicate an overall consideration worth nearly $16 billion. KKR will hold a 4.6% equity stake in WBA.
The completed merger now makes WBA the largest pharmacy-led and wellbeing enterprise, operating in over 25 countries and employing more than 370,000 people. Its retail business includes about 12,800 locations, while its pharmaceutical wholesale and distribution network has now become the world's largest, serving over 180,000 pharmacies via 340 distribution centers.