Walgreens Boots Alliance (WBA) has agreed to acquire McKesson’s share of their GEHE Pharma Handel (GEHE) and Alliance Healthcare Deutschland (AHD) joint venture.
GEHE and AHD combined their operations in the German pharmaceutical market in November 2020. That transaction saw WBA become the 70% owner of the joint venture, with McKesson holding the remaining 30%.
The latest deal means WBA will now become the 100% owner of the combined businesses in Germany. The financial terms of the transaction have not been disclosed.
McKesson recently announced the sale of other businesses in mainland Europe to the Phoenix Group as part of moves by the US firm to streamline its operations and fully exit the European region. Last month, McKesson also reached an agreement to sell its LloydsPharmacy And AAH businesses in the UK to asset management group AURELIUS.
“We are very pleased to have reached agreement with McKesson to take full control of our joint German pharmaceutical wholesaling operations. This new, exciting step enables Walgreens Boots Alliance to further strengthen its position as a leading pharmaceutical wholesaler in Germany,” said Ornella Barra, Chief Operating Officer, International, Walgreens Boots Alliance.
“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.”
Brian Tyler, chief executive officer of McKesson, added: “The sale of our minority stake in the GEHE-Alliance Healthcare joint venture in Germany is part of our stated intention to exit the European market to reinvest in strategic growth opportunities elsewhere. We believe that WBA is an excellent parent company for the GEHE-Alliance Healthcare businesses in Germany and wish our colleagues all the best under their full ownership.”
NAM Implications:
- Increased focus of the WBA business in Germany…
- ….and a non-distracted focus in the US by McKesson.
- Should make account managing each company by suppliers a little simpler…
- (at least re prices & terms…)
