Walgreens Boots Alliance Exercises Second Tranche of Warrants to Purchase AmerisourceBergen Shares
August 25 2016 - 4:15PM
Business Wire
Walgreens Boots Alliance, Inc. (Nasdaq: WBA) today announced
that it had agreed with AmerisourceBergen Corporation (NYSE: ABC)
to amend the second tranche of warrants held by Walgreens Boots
Alliance to purchase AmerisourceBergen common stock, so as to
permit the immediate exercise of these warrants. The warrants were
originally scheduled to be exercisable in March 2017.
Walgreens Boots Alliance then exercised these warrants and
purchased 22,696,912 shares of AmerisourceBergen common stock for
an aggregate payment of approximately $1.19 billion. The
transaction was funded using existing cash on hand.
“Today’s announcement builds on the strong and collaborative
working relationship our companies have built together, and further
strengthens the long-term strategic relationship we launched in
2013,” said Executive Vice Chairman and CEO Stefano Pessina. “Since
the beginning of the strategic relationship, we have worked
together with AmerisourceBergen to improve the customer experience
by delivering the right products at the right time to ensure that
we are able to provide exceptional patient access and care in our
U.S. pharmacy operations.”
With today’s exercise of these warrants, Walgreens Boots
Alliance now beneficially owns 56,854,867 shares of
AmerisourceBergen common stock, or 23.9 percent of
AmerisourceBergen’s outstanding equity (based on shares outstanding
as of 31 July 2016, adjusted to give effect to the exercise of
these warrants).
Walgreens Boots Alliance intends to continue to account for its
investment in AmerisourceBergen using the equity method of
accounting, subject to a two-month lag, with the net earnings
attributable to its investment being classified within the
operating income of the company’s Pharmaceutical Wholesale
segment.
Notes to Editors:
About Walgreens Boots Alliance
Walgreens Boots Alliance (Nasdaq: WBA) is the first global
pharmacy-led, health and wellbeing enterprise.
The company was created through the combination of Walgreens and
Alliance Boots in December 2014, bringing together two leading
companies with iconic brands, complementary geographic footprints,
shared values and a heritage of trusted health care services
through pharmaceutical wholesaling and community pharmacy care,
dating back more than 100 years.
Walgreens Boots Alliance is the largest retail pharmacy, health
and daily living destination in the USA and Europe and, together
with its equity method investments*, employs more than 370,000*
people and has a presence in more than 25* countries. Walgreens
Boots Alliance is a global leader in pharmacy-led, health and
wellbeing retail with over 13,100* stores in 11* countries. The
company includes one of the largest global pharmaceutical wholesale
and distribution networks with over 350* distribution centers
delivering to more than 200,000** pharmacies, doctors, health
centers and hospitals each year in 19* countries. In addition,
Walgreens Boots Alliance is one of the world’s largest purchasers
of prescription drugs and many other health and wellbeing
products.
The company’s portfolio of retail and business brands includes
Walgreens, Duane Reade, Boots and Alliance Healthcare, as well as
increasingly global health and beauty product brands, such as No7,
Botanics, Liz Earle and Soap & Glory.
* As at 31 August 2015 (without subsequent adjustment for
business acquisitions or dispositions), including equity method
investments
** For 12 months ended 31 August 2015 (without subsequent
adjustment for business acquisitions or dispositions), including
equity method investments
(WBA-GEN)
Cautionary Note Regarding Forward-Looking Statements: All
statements in this release that are not historical are
forward-looking statements made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements are not guarantees of future
performance and involve risks, assumptions and uncertainties,
including those described in Item 1A (Risk Factors) of our Form
10-K for the fiscal year ending 31 August 2015 and our Form 10-Q
for the fiscal quarter ended 31 May 2016, which are incorporated
herein by reference, and in other documents that we file or furnish
with the Securities and Exchange Commission. Should one or more of
these risks or uncertainties materialize, or should underlying
assumptions prove incorrect, actual results may vary materially.
These forward-looking statements speak only as of the date they are
made. Except to the extent required by law, we do not undertake,
and expressly disclaim, any duty or obligation to update publicly
any forward-looking statement after the date of this release,
whether as a result of new information, future events, changes in
assumptions or otherwise.
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Walgreens Boots Alliance, Inc.Media RelationsUSA /
Michael Polzin+1 847 315 2920orInternational / Laura Vergani+44
(0)207 980 8585orInvestor RelationsGerald Gradwell and
Ashish Kohli+1 847 315 2922
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