Walgreens to buy remaining Alliance Boots stake

The £9bn deal, which is expected to complete in early 2015, will see KKR fully exit its holding in Alliance Boots.

Walgreens Boots Alliance will be headquartered in Chicago, following political and media backlashes against proposals to move the pharmaceutical's base outside of the US to avoid hefty tax charges.

The exit sees Alliance Boots chairman Stefano Pessina reaping a £1.5bn cash pay-out as well as £2.95bn worth of shares in the enlarged group. Pessina will also become vice chairman with a focus on M&A and strategy.

Previous investment
KKR and Ardian (known at the time as AXA Private Equity) completed the buyout of Alliance Boots in June 2007, in what remains the largest private equity-backed buyout in Europe. The deal valued the UK retailer at £11.1bn, with around £7.45bn of senior debt and £750m of mezzanine.

In June 2012, the buyout duo made a partial exit through the sale of a 45% stake to Walgreens for £4.3bn.

Company
Following the deal, Walgreens Boots Alliance will be headquartered in Chicago and Nottingham, running 11,000 stores across 10 countries and employing 350,000 staff globally. The company expects to generate combined revenues of between $126-130bn by 2016.

Alliance Boots was formed in 2006 through the merger of Alliance UniChem Plc and Boots Group Plc.

The Alliance UniChem Group was formed in 1997 when UniChem merged with Alliance Santé. On completion of the merger, UniChem was renamed Alliance UniChem Plc. The UniChem group was formed by a group of retail pharmacists in London in 1938, its initial business being the wholesaling of pharmaceutical products to independent pharmacists.

The Boots family began trading in 1849, selling herbal remedies from a small store in Goose Gate, Nottingham. By the 1930s, there were more than 1,000 Boots stores selling a wide range of products. The first overseas store opened in New Zealand in 1936.

People
Stefano Pessina was chairman of Alliance Boots and will become executive vice chairman of Walgreens Boots Alliance. Greg Wasson is CEO of Walgreens Boots Alliance.

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• Topics
• Exits
• Consumer
• UK / Ireland
• KKR
• Ardian (formerly Axa PE)