Jan. 6 (UPI) -- Walgreens Boots Alliance said Wednesday it has sold the bulk of its Alliance Healthcare business to AmerisourceBergen Corp. for nearly $6.5 billion.
The deal includes $6.275 billion in cash along with $2 million shares of AmerisourceBergen common stock. The two companies have had ties since 2013. Walgreens holds 30% of AmerisourceBergen stock.
"This deal will enable significant value creation for both companies and will generate new synergies in addition to those already captured," Stefano Pessina, executive vice chairman and CEO of Walgreens Boots Alliance, said in a statement. "It is a logical step following the success of our long-term strategic relationship with AmerisourceBergen, which has been a strong and trusted partner since 2013."
The companies also agreed to extend and expand their commercial agreements. The U.S. distribution agreement will be extended until 2029 and their partnership is being expanded to include a commitment to pursue additional opportunities in sourcing and distribution. The Alliance Healthcare UK will stay a distribution partner of Walgreens until 2031.
"AmerisourceBergen's vital role in the health system as a key pillar of pharmaceutical innovation and access has been on full display over the past year," Steven Collis, chairman, president and CEO of AmerisourceBergen, said in the statement. "AmerisourceBergen's financial and strategic position enables this next evolution of enhancing our ability to provide healthcare capabilities across regions and deliver innovative solutions for our upstream and downstream partners."