Walgreens 2013 Annual Report Download - page 17

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2013 Walgreens Annual Report 15
Establish an Efficient
Global Platform
Since Walgreens and Alliance Boots closed the initial step in
August 2012 to create the first global pharmacy-led, health and
well-being enterprise, the two companies are making progress
in their partnership and exceeded first-year synergy targets.
Alliance Boots contributed 16 cents per diluted share to Walgreens
adjusted earnings for the year. As part of the partnership,
Walgreens has invested in a 45 percent equity ownership stake in
Alliance Boots and has the option to proceed to a full combination
by acquiring the remaining 55 percent of Alliance Boots beginning
in February 2015. Together, Walgreens and Alliance Boots, and
now with their partner AmerisourceBergen, are making significant
progress in building a global, integrated wholesale-retail model.
In the year since Walgreens announced this strategic partnership,
the companies have shared and learned from each other’s best
practices and continued to develop opportunities to make the most
of the partnership. Much of this activity has been oriented toward
purchasing and product procurement, with some focus on product
distribution. For example, certain Walgreens stores now carry
Boots popular No7 beauty products and Boots No7 Men skincare
line is available throughout the country. No7 is well known for
its internationally acclaimed range of skincare products which
are hypoallergenic, dermatologically tested and backed
by science – all at an affordable price. Here, customer
April Hayes explores No7 products at one of Walgreens
premium beauty departments, called LOOK Boutiques. Through their relationship with AmerisourceBergen, Walgreens and
Alliance Boots are forming a collaborative wholesale-retail model
here in the United States, with a 10-year distribution agreement
for branded and generic products. Together, the three companies
are now best positioned to drive efficiency and innovation throughout
the pharmaceutical supply chain.
FY16 Goal
$1 billion
in synergies
from strategic
partnership