Walgreens Boots Acquires Remaining Stake in German JV from McKesson
This article was originally published on TipRanks.com
American pharmaceuticals holding company Walgreens Boots Alliance (WBA) has inked a deal with McKesson Corporation (MCK) to acquire the remaining 30% share of their joint ventures in GEHE Pharma Handel (GEHE) and Alliance Healthcare Deutschland (AHD).
The financial terms of the deal have been kept under wraps. Shares of the company were down 2.8% to close at $44.80 on November 30. (See Walgreens stock charts on TipRanks)
Through the acquisition, WBA aims to further bolster its position as a leading pharmaceutical wholesaler in Germany. Upon completion, WBA will become the sole owner of the combined GEHE and Alliance Healthcare businesses in Germany. The acquisition is subject to certain regulatory approvals.
On November 1, 2020, GEHE and AHD combined their operations in the German pharmaceutical market, wherein WBA owned 70% of the JV and McKesson held the remaining 30%.
Earlier in July this year, McKesson announced its intention to completely exit the European market with an aim to reinvest in strategic growth opportunities elsewhere. It also sold certain other European businesses.
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Management Weighs In
COO of International at Walgreens Boots Alliance, Ornella Barra, said, “We thank McKesson for their partnership in forming and developing our joint venture and look forward to further improving our innovative services to manufacturers and pharmacists in Germany.”
Wall Street’s Take
Consensus among analysts is a Hold based on 1 Buy and 4 Holds. At the time of writing, the average Walgreens price target was $55.80, which implies 24.6% upside potential to current levels.
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