Walgreens Boots Alliance raises stake in AmerisourceBergen to 23.9%

DEERFIELD, Ill. -- Walgreens Boots Alliance announced Thursday it has exercised warrants to purchase 22.7 million AmerisourceBergen common shares, representing a stake of 23.9%.

Walgreens Boots Alliance then exercised these warrants and purchased 22,696,912 shares of AmerisourceBergen common stock for an aggregate payment of approximately $1.19 billion. The warrants were originally scheduled to be exercisable in March 2017. The transaction was funded using existing cash on hand.

“Today’s announcement builds on the strong and collaborative working relationship our companies have built together, and further strengthens the long-term strategic relationship we launched in 2013,” said Executive Vice Chairman and CEO Stefano Pessina.  “Since the beginning of the strategic relationship, we have worked together with AmerisourceBergen to improve the customer experience by delivering the right products at the right time to ensure that we are able to provide exceptional patient access and care in our U.S. pharmacy operations.”

With the exercise of these warrants, Walgreens Boots Alliance now beneficially owns 56,854,867 shares of AmerisourceBergen common stock, or 23.9% of AmerisourceBergen’s outstanding equity (based on shares outstanding as of 31 July 2016, adjusted to give effect to the exercise of these warrants).

Walgreens Boots Alliance started building its stake in ABC in 2013, when the companies entered into a 10-year supply agreement.