Walgreen To Buy 45 Percent Stake In Alliance Boots

Joon
June 19, 2012 04:00 AM

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A worker stocks a new Walgreens store in Chicago January 9, 2012. Walgreen Co is going through "the worst" part of not being in Express Scripts Inc's network and, while the transition is difficult now, the drugstore should rebound as the year progresses, its top pharmacy executive said on Monday.

Walgreen Co said it would buy a 45 percent stake in KKR & Co-owned Alliance Boots for $6.7 billion in a cash and stock deal that would bring together the two largest pharmacy chains in the United States and Europe.

Walgreen, which has the option to buy the rest of Alliance Boots in the next three years, said it would pay $4 billion in cash and 83.4 million shares for the stake.

Walgreen said the deal would add substantially to its earnings per share in the first year.

The company also reported third-quarter earnings of $537 million, or 62 cents per share, compared with $603 million, or 65 cents per share, a year earlier.

Walgreen said it would increase its quarterly dividend to 27.5 cents per share from 22.5 cents.

Reuters