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DEERFIELD, Ill. — Walgreens Boots Alliance (WBA) plans to pay about $416 million to acquire a 40% stake in Sinopharm Holding GuoDa Drug Store Co.
WBA confirmed the deal on Monday. GuoDa is the largest retail pharmacy operator in China, with nearly 3,700 stores.
With stores in 70 major cities across the country, GuoDa is a subsidiary of state-owned Sinopharm, the largest pharmaceutical company in China. It has been the industry’s sales leader for the past five years.
“We are very pleased to become a strategic investor in GuoDa,” WBA executive vice chairman and chief executive officer Stefano Pessina said in a statement. “It is China’s leading pharmacy chain, and we believe that we can positively contribute to its continued successful development with our global pharmacy expertise. We have had a presence in China for around 10 years, initially through Alliance Boots, and we are excited about the opportunity to further invest in the country’s fast growing retail pharmacy sector.”
Overall, WBA’s international reach includes more than 13,200 stores in 11 countries as well as one of the largest global pharmaceutical wholesale and distribution networks, with more than 390 warehouses delivering to more than 230,000 pharmacies, doctors, health centers and hospitals each year in more than 20 countries. In addition, the company is one of the world’s largest purchasers of prescription drugs and many other health and well-being products.
WBA and the companies in which it has equity method investments together have a presence in more than two dozen countries.
*Editor’s Note: Article updated with more transaction details and executive comment.
