DEERFIELD, Ill.--(BUSINESS WIRE)--
Walgreens Boots Alliance, Inc. (Nasdaq: WBA) today announces that it has
reached an agreement with China National Accord Medicines Corporation
Ltd. to become an investor in its subsidiary Sinopharm Holding Guoda
Drugstores Co., Ltd. ("GuoDa"), which operates and franchises retail
pharmacies across China.
Following a public tender process, Walgreens Boots Alliance's bid met
all the requirements set by the seller to acquire a 40 percent minority
stake in GuoDa through a capital increase worth RMB2.767 billion (around
$416 million). The transaction is subject to regulatory review and
approval, and other customary closing conditions. Upon completion,
Walgreens Boots Alliance would account for this stake as an equity
GuoDa is a leading retail pharmacy chain in China, and has been pursuing
its vision for expansion across the country in the context of the
ongoing healthcare reforms and increasing importance of the pharmacy
channel in the country. Walgreens Boots Alliance, as a global
pharmacy-led enterprise, believes it is well positioned to provide its
significant expertise to GuoDa and support its growth ambitions.
Executive Vice Chairman and CEO Stefano Pessina said, "We are very
pleased to become a strategic investor in GuoDa. It is China's leading
pharmacy chain and we believe that we can positively contribute to its
continued successful development with our global pharmacy expertise. We
have had a presence in China for around 10 years, initially through
Alliance Boots, and we are excited about the opportunity to further
invest in the country's fast growing retail pharmacy sector."
Notes to Editors:
Sinopharm Holding Guoda Drugstore Co., Ltd. ("GuoDa") is a large
national pharmacy chain in China. It is China National Pharmaceutical
Group Corporation's (CNPGC) retail pharmacy platform, established in
March 2004 and headquartered in Shanghai.
GuoDa operates more than 3,500 retail pharmacies across around 70
cities, and employs close to 20,000 people. In 2016, GuoDa was
consolidated into China National Accord Medicines Corporation Ltd.
("Sinopharm Accord") (Shenzhen Stock Exchange/A Share: 000028). After
over 10 years of rapid growth, GuoDa has developed national coverage
across 19 provinces, autonomous regions and municipalities.
In line with CNPGC's strategy to further grow the State-owned
pharmaceutical and healthcare business, GuoDa aims to take advantage of
the unprecedented opportunities created by the Chinese healthcare reform
to further expand nationwide.
About Walgreens Boots Alliance
Walgreens Boots Alliance (Nasdaq: WBA) is the first global pharmacy-led,
health and wellbeing enterprise. The company's heritage of trusted
health care services through community pharmacy care and pharmaceutical
wholesaling dates back more than 100 years.
Walgreens Boots Alliance is the largest retail pharmacy, health and
daily living destination across the U.S. and Europe. Walgreens Boots
Alliance and the companies in which it has equity method investments
together have a presence in more than 25* countries and employ more than
385,000* people. The company is a global leader in pharmacy-led, health
and wellbeing retail and, together with the companies in which it has
equity method investments, has more than 13,200* stores in 11* countries
as well as one of the largest global pharmaceutical wholesale and
distribution networks, with more than 390* distribution centers
delivering to more than 230,000** pharmacies, doctors, health centers
and hospitals each year in more than 20* countries. In addition,
Walgreens Boots Alliance is one of the world's largest purchasers of
prescription drugs and many other health and wellbeing products.
The company's portfolio of retail and business brands includes
Walgreens, Duane Reade, Boots and Alliance Healthcare, as well as
increasingly global health and beauty product brands, such as No7, Soap
& Glory, Liz Earle, Sleek MakeUP and Botanics.
The company ranks No. 1 in the Food and Drug Stores industry of Fortune
magazine's 2017 list of the World's Most Admired Companies.
More company information is available at www.walgreensbootsalliance.com.
* As of 31 August 2017, using publicly available information for
** For 12 months ending 31 August 2017, using publicly available
information for AmerisourceBergen.
Cautionary Note Regarding Forward-Looking Statements
All statements in this release that are not historical statements are
forward-looking statements made pursuant to the safe harbor provisions
of the Private Securities Litigation Reform Act of 1995. Such statements
include, but are not limited to, statements regarding the agreement with
China National Accord Medicines Corporation Ltd to become an investor in
its subsidiary GuoDa, the transaction contemplated thereby, the tender
process with respect thereto and the possible time and effects thereof,
the ability of the parties to complete the transactions considering the
various closing conditions, and statements regarding retail pharmacy
growth and expansion in China. Words such as "expect," "pending,"
"potential", "likely," "preliminary," "would," "could," "should," "can,"
"will," "project," "intend," "plan," "believe," "seek," "estimate,"
"anticipate," "may," "possible," "assume," and variations of such words
and similar expressions are intended to identify such forward-looking
statements. These forward-looking statements are not guarantees of
future performance and are subject to risks, uncertainties and
assumptions, known or unknown, which could cause actual results to vary
materially from those indicated or anticipated. Such risks include, but
are not limited to, risks related to the proposed transactions and
acquisitions generally, including the risk that the transactions may not
close due to one or more closing conditions to the transactions not
being satisfied or waived, risks related to the ability to realize the
anticipated benefits of the proposed transactions, the outcome of legal
and regulatory matters, the risk of unexpected costs, liabilities or
delays, changes in management's assumptions, and risks associated with
changes in laws, regulations or interpretations thereof. These and other
risks, assumptions and uncertainties are described in Item 1A (Risk
Factors) of the Company's Annual Report on Form 10-K for the fiscal year
ended August 31, 2017, which is incorporated herein by reference, and in
other documents that the Company files or furnishes with the Securities
and Exchange Commission. Should one or more of these risks or
uncertainties materialize, or should underlying assumptions prove
incorrect, actual results may vary materially from those indicated or
anticipated by such forward-looking statements. Accordingly, you are
cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date they are made. Except to the
extent required by law, Walgreens Boots Alliance does not undertake, and
expressly disclaims, any duty or obligation to update publicly any
forward-looking statement after the date of this release, whether as a
result of new information, future events, changes in assumptions or
View source version on businesswire.com: http://www.businesswire.com/news/home/20171206005587/en/
Walgreens Boots Alliance, Inc.
+1 847 315 2935
International / Laura
+44 (0)207 980 8585
Gradwell and Ashish Kohli
+1 847 315 2922
Source: Walgreens Boots Alliance, Inc.
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