boots

KKR in Billion Dollar Drug-Store Merger

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June 25, 2012

Walgreens has agreed to acquire its private equity-backed British peer Alliance Boots GmbH in a cash and shares deal valuing the UK company at about USD27 billion including debt. The deal is a partial exit for Alliance Boots owners Kohlberg Kravis Roberts, along with its CEO and significant shareholder Stefano Pessina, reports Deal Pipeline. KKR bought the company with Pessina in 2007, at the height of the credit bubble, says the report. It invested USD 2.45 billion in the company at the time. At moment, KKR will receive USD1.8 billion in cash and 7 million Walgreens shares of common stock equivalent to USD 0.2 billion for its share of the initial 45% stake.

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