Walgreens Boots Alliance buys Rite Aid in an approximately $17,2 billion deal, including debt. It is the latest move by the Italian billionaire Stefano Pessina, CEO of the company, to create a global pharmaceutical giant.
In fact, with the integration, the second largest pharmacy chain in the United States joins the third, stealing the first position from CVS Health. The transaction rumors alone (later confirmed) sent Rite Aid shares up 42,6% to $8,67, while Walgreens shares rose 6,35% to $95,16.
Walgreens Boots will acquire all outstanding Rite Aid shares offering $9 in cash each, a 48% premium over the stock's October 26 level. Pessina, 74, said in a statement that "the announcement is another step in the global development of Walgreens Boots Alliance and continues our profitable growth strategy."
In a conference call last July Pessina did not hide his desire for large M&A operations: "We can clearly see the need or opportunity for horizontal and vertical consolidation in our sector".
In terms of business results, Walgreens reported adjusted earnings per share of $0,88 in the fiscal fourth quarter, well above the $0,81 average expected by analysts. Revenues instead rose to 28,52 billion dollars, from 19,06 recorded in the same period last year.
