Walgreens Boots Alliance and McKesson to Create German Wholesale Joint Venture
December 12 2019 - 4:00AM
Business Wire
- New entity combines wholesale operations to drive sustainable
growth and deliver efficient distribution solutions for an evolving
market
- Partnership will enable investment in new and enhanced
services, delivering operational excellence and maintaining service
levels for German customers
Walgreens Boots Alliance (Nasdaq: WBA) and McKesson Corporation
(NYSE: MCK) today signed an agreement to create a joint venture
that will combine their respective pharmaceutical wholesale
businesses in Germany, Alliance Healthcare Deutschland and GEHE
Pharma Handel. WBA will have a 70% controlling equity interest in
the joint venture and McKesson will have a 30% ownership
interest.
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The new joint venture is expected to enhance the ability to
compete and deliver high customer satisfaction through new services
and operational excellence, ultimately advancing patient-centric
solutions. In addition, the combined business will deliver
efficient distribution solutions, and drive greater economies of
scale, stimulating the competitiveness of the German pharmaceutical
wholesale market. The transaction does not include any other WBA or
McKesson businesses outside of the German wholesale activities.
Ornella Barra, Co-Chief Operating Officer, WBA, said: “Combining
our wholesale operations is the right decision to secure the
long-term success of both businesses. This is a strategic step that
will offer benefits for all. We are creating a sustainable company
to drive success for our customers and the German healthcare
system.”
“We are excited to join forces with Walgreens Boots Alliance,
and through this strategic partnership we are securing the future
of pharmaceutical distribution in the German market,” says Kevin
Kettler, chairman of McKesson Europe’s management board, “This
transaction provides a unique opportunity to drive operational
success in a complex environment.”
Organization and Regulatory Approvals
Both companies will have a proportional representation on the
joint venture’s Supervisory Board. The transaction is subject to
merger clearance and approval by the customary authorities. This
process is expected to take at least six months. Financial terms of
the transaction have not been disclosed.
About Walgreens Boots Alliance
Walgreens Boots Alliance (Nasdaq: WBA) is the first global
pharmacy-led, health and wellbeing enterprise. The company's
heritage of trusted health care services through community pharmacy
care and pharmaceutical wholesaling dates back more than 100
years.
Walgreens Boots Alliance is the largest retail pharmacy, health
and daily living destination across the U.S. and Europe. Walgreens
Boots Alliance and the companies in which it has equity method
investments together have a presence in more than 25 countries and
employ more than 415,000 people. The company is a global leader in
pharmacy-led, health and wellbeing retail and, together with its
equity method investments, has more than 18,500 stores in 11
countries as well as one of the largest global pharmaceutical
wholesale and distribution networks, with more than 390
distribution centers delivering to more than 230,000 pharmacies,
doctors, health centers and hospitals each year in more than 20
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,
Soap & Glory, Liz Earle, Sleek MakeUP and Botanics.
Walgreens Boots Alliance is proud to be a force for good,
leveraging many decades of experience and its international scale,
to care for people and the planet through numerous social
responsibility and sustainability initiatives that have an impact
on the health and wellbeing of millions of people.
Walgreens Boots Alliance is included in Fortune magazine’s 2019
list of the World’s Most Admired Companies and ranked first in the
food and drugstore category. This is the 26th consecutive year that
Walgreens Boots Alliance or its predecessor company, Walgreen Co.,
has been named to the list. More company information is available
at www.walgreensbootsalliance.com.
About McKesson
McKesson Corporation, currently ranked 7th on the FORTUNE 500,
is a global leader in healthcare supply chain management solutions,
retail pharmacy, community oncology and specialty care, and
healthcare information technology. McKesson partners with
pharmaceutical manufacturers, providers, pharmacies, governments
and other organizations in healthcare to help provide the right
medicines, medical products and healthcare services to the right
patients at the right time, safely and cost-effectively. United by
our ICARE shared principles, our employees work every day to
innovate and deliver opportunities that make our customers and
partners more successful — all for the better health of patients.
McKesson has been named the “Most Admired Company” in the
healthcare wholesaler category by FORTUNE, a “Best Place to Work”
by the Human Rights Campaign Foundation, and a top
military-friendly company by Military Friendly. For more
information, visit www.McKesson.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20191212005230/en/
Walgreens Boots Alliance Media Contacts: Walgreens Boots
Alliance Media Relations Contact International +44 (0)20 7980
8585
Investor Relations Contact Gerald Gradwell and Jay Spitzer +1
847 315 2922
McKesson Media Contacts: General and Business Media:
David Matthews +1 214.952.0833 David.Matthews@McKesson.com
Investors and Financial Media: Holly Weiss +1 972.969.9174
Holly.Weiss@McKesson.com
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