Walgreens Boots Alliance Sells Six Million Shares of AmerisourceBergen Corporation

Rhea-AI Summary

Walgreens Boots Alliance has sold 6.0 million shares of AmerisourceBergen Corporation for $900 million, reducing its stake from 28.1% to 25.2%. The proceeds will primarily be allocated for debt paydown and supporting strategic initiatives. Despite the sale, Walgreens maintains its long-term partnership with AmerisourceBergen, ensuring ongoing collaboration. This strategic move aims to optimize capital allocation and enhance the company's balance sheet, reflecting a commitment to shareholder value.

Positive

• Sale of 6.0 million shares generates $900 million for debt paydown.
• Reduction of stake to 25.2% maintains control while improving capital allocation.
• No impact on long-term partnership with AmerisourceBergen, ensuring ongoing collaboration.

Negative

• None.

Transaction Highlights

• Walgreens Boots Alliance announces sale of 6.0 million shares held in AmerisourceBergen Corporation
• Proceeds of $900 million to Walgreens Boots Alliance, which will be used primarily for debt paydown and the continued support of the company’s strategic priorities
• No change to ongoing collaboration and long-term strategic partnership

DEERFIELD, Ill.--(BUSINESS WIRE)-- Walgreens Boots Alliance, Inc. (Nasdaq: WBA) today announced that it has sold 6.0 million shares of AmerisourceBergen Corporation (NYSE: ABC) common stock pursuant to Rule 144 at a price of $150 per share.

After the sale, Walgreens Boots Alliance’s ownership of AmerisourceBergen’s common stock has decreased from approximately 28.1 percent to approximately 25.2 percent.

The sale has no impact to the long-term partnership between the two companies. Walgreens Boots Alliance remains fully committed to the strategic, mutually beneficial relationship with AmerisourceBergen, which has been a strong and trusted partner since 2013. Chief Operating Officer, International of Walgreens Boots Alliance, Ornella Barra, will continue to serve on AmerisourceBergen’s Board of Directors.

Proceeds to Walgreens Boots Alliance are expected to be approximately $900 million, which the company intends to use primarily for debt paydown and the continued support of its strategic priorities.

Chief Executive Officer Rosalind Brewer said:

“Walgreens Boots Alliance and AmerisourceBergen will continue our very productive collaboration, creating significant value for both companies. We’ve taken the opportunity to monetize holdings at this time to realize a strong return on our investment, while complementing our other actions to optimize our capital allocation. Today’s action enhances our balance sheet and is consistent with our efforts to generate value for our shareholders.”

About Walgreens Boots Alliance

Walgreens Boots Alliance (Nasdaq: WBA) is an integrated healthcare, pharmacy and retail leader serving millions of customers and patients every day, with a 170-year heritage of caring for communities.

A trusted, global innovator in retail pharmacy with approximately 13,000 locations across the U.S., Europe and Latin America, WBA plays a critical role in the healthcare ecosystem. The company is reimagining local healthcare and well-being for all as part of its purpose – to create more joyful lives through better health. Through dispensing medicines, improving access to a wide range of health services, providing high quality health and beauty products and offering anytime, anywhere convenience across its digital platforms, WBA is shaping the future of healthcare.

WBA has more than 315,000 team members and a presence in nine countries through its portfolio of consumer brands: Walgreens, Boots, Duane Reade, the No7 Beauty Company, Benavides in Mexico and Ahumada in Chile. Additionally, WBA has a portfolio of healthcare-focused investments located in several countries, including China and the U.S.

The company is proud of its contributions to healthy communities, a healthy planet, an inclusive workplace and a sustainable marketplace. WBA has been recognized for its commitment to operating sustainably: it is an index component of the Dow Jones Sustainability Indices (DJSI) and was named to the 100 Best Corporate Citizens 2021.

More company information is available at www.walgreensbootsalliance.com.

WBA-GEN

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WBA Media Relations

USA / Jim Cohn, +1 224 813 9057

International, +44 (0)20 7980 8585



WBA Investor Relations

Tiffany Kanaga, +1 847 315 2922

Source: Walgreens Boots Alliance, Inc.

FAQ

What was the sale price of Walgreens Boots Alliance's shares in AmerisourceBergen?

Walgreens Boots Alliance sold 6.0 million shares of AmerisourceBergen at a price of $150 per share.

How much money did Walgreens Boots Alliance receive from the AmerisourceBergen share sale?

Walgreens Boots Alliance received approximately $900 million from the sale of its shares in AmerisourceBergen.

What percentage of AmerisourceBergen does Walgreens Boots Alliance own after the sale?

After the sale, Walgreens Boots Alliance's ownership in AmerisourceBergen decreased from approximately 28.1% to 25.2%.

What is Walgreens Boots Alliance's plan for the proceeds from the AmerisourceBergen share sale?

Walgreens Boots Alliance intends to use the proceeds primarily for debt paydown and to support its strategic priorities.

Will the sale of shares affect the relationship between Walgreens Boots Alliance and AmerisourceBergen?

The sale has no impact on the long-term partnership between Walgreens Boots Alliance and AmerisourceBergen.