DEERFIELD, Ill. — The deal that paired Walgreens and Alliance Boots with wholesaler AmerisourceBergen has received the required regulatory clearances, the companies announced Friday.
The regulatory clearances permit both Walgreens and Alliance Boots the purchase of up to 7% of the fully diluted equity of AmerisourceBergen in the open market, and the exercise of two warrants for 16% in the aggregate of the fully diluted equity of AmerisourceBergen in 2016 and 2017.
The clearances permit the investment in AmerisourceBergen up to 25% in the aggregate, including the effect of any stock repurchases that AmerisourceBergen may engage in from time to time. Walgreens and Alliance Boots announced that they had been granted the right to purchase a minority equity position in AmerisourceBergen as part of a broader innovative long-term agreement on March 19.
For AmerisourceBergen, the strategic,long-term relationship with Walgreens and Alliance Boots includes a 10-year comprehensive primary pharmaceutical distribution contract with Walgreens; access to generic drugs and related pharmaceutical products through the Walgreens Boots Alliance Development joint venture; and opportunities to accelerate AmerisourceBergen's efforts to grow its specialty and manufacturer services businesses domestically and internationally.
Walgreens will have the ability to appoint one director to AmerisourceBergen’s board upon Walgreens and Alliance Boots together acquiring a 5% equity stake, and a second director upon exercise in full of the first warrants.