Walgreens Boots Alliance has agreed to market most of its pharmacy distribution device to drug wholesaler AmerisourceBergen for $six.five billion to emphasis on its main retail business enterprise and growing its well being-care offerings.

The Alliance Healthcare device distributes well being-care products and solutions and products and services to far more than one hundred fifteen,000 pharmacies, hospitals, and other well being suppliers, running in 13 nations, generally in Europe.

The deal introduced on Wednesday phone calls for AmerisourceBergen to fork out about $six.three billion in income and two million of its shares for Alliance Healthcare. Underneath an existing settlement, Walgreens sources branded and generic drugs from AmerisourceBergen in the U.S.

The transaction “is a sensible move following the achievements of our prolonged-phrase strategic connection with AmerisourceBergen which has been a potent and dependable associate because 2013,” Walgreens CEO Stefano Pessina stated in a information release. “The transaction will gas greater future investments to expand and rework our main retail pharmacy and health care firms.”

In its hottest quarter, Walgreens generated $six billion in sales from Alliance Healthcare and the thirty% stake it owns in AmerisourceBergen. U.S. sales for Walgreens’s U.S. retail-pharmacy device ended up up around 4% to $27 billion.

As The Wall Street Journal experiences, Walgreens’s transfer to exit most of its wholesale business enterprise will come as faces worries similar to the coronavirus pandemic. It has also been “seeking to give patients far more reasons to check out [its retail] destinations as Amazon pushes into the prescription-drug business enterprise.”

The company has partnered with VillageMD to open up clinics with main-care medical practitioners at Walgreens websites throughout the U.S. around the following 5 decades.

For AmerisourceBergen, “The deal is created to expand AmerisourceBergen’s presence in Europe, as Alliance is a single of the major wholesalers on the continent,” the Economical Times documented.

“Today’s bulletins will expand our arrive at and solutions in pharmaceutical distribution and include to AmerisourceBergen’s breadth and depth of global maker products and services,” the company’s CEO, Steven Collis, stated.

In buying and selling Wednesday, Walgreens shares rose 4.five% to $43.03. The sale of Alliance Healthcare is expected to include to its altered earnings for every share in the large-teens share immediately after it closes by the close of fiscal 2021.

AmerisourceBergen, drug distribution, Well being Treatment, retail pharmacy, Stefano Pessina, Walgreens Boots Alliance