Alliance Boots and Walgreens form global partnership

Alliance Boots has formed a new strategic partnership with Walgreens, the largest drug store chain in the US, in order to create a global pharmacy-led health and wellbeing enterprise.

The agreement will see Walgreens purchase a 45 percent stake in Alliance Boots for $6.7 billion (4.27 billion pounds), with an option to completely acquire the firm in approximately three years' time.

Bringing these two organisations together will create the world's largest pharmacy-led health and wellbeing retailer, with more than 11,000 stores in 12 countries, a diverse portfolio and unparalleled procurement capabilities.

The deal is also expected to greatly aid the companies' efforts to expand into new territories, while delivering substantial value for shareholders in the long term.

Stefano Pessina, executive chairman of Alliance Boots, said: "I strongly believe that this transaction offers further significant growth opportunities and marks a very positive milestone for the healthcare industry as a whole."

Alliance Boots generated 23 billion pounds in revenue during the 12 months ending on March 31st 2012, representing year-on-year growth of 18.4 percent.