AmerisourceBergen’s $6.5 Billion Acquisition of the Majority of WBA’s Alliance Healthcare Businesses

Cleary Gottlieb Steen & Hamilton LLP and Baker McKenzie LLP represented Walgreens Boots Alliance, while Cravath, Swaine & Moore LLP, Hogan Lovells International LLP and Morgan, Lewis & Bockius LLP served as legal advisors to AmerisourceBergen in the transaction. Debevoise & Plimpton LLP advised J.P. Morgan Securities LLC as financial advisor to AmerisourceBergen. Maverick Advocaten assisted AmerisourceBergen Corporation and Alliance Healthcare in obtaining approval from the NZa.

Walgreens Boots Alliance (NASDAQ: WBA) closed the $6.5 billion strategic transaction with AmerisourceBergen Corporation (NYSE: ABC) that was announced on January 6, 2021.  

In the transaction, ABC will acquire the majority of WBA’s Alliance Healthcare businesses for approximately $6.5 billion, comprised of $6.275 billion in cash and two million shares of AmerisourceBergen common stock. Additionally, the two companies have agreed to strengthen their strategic partnership by extending and expanding their commercial agreements. Their U.S. distribution agreement will be extended by three years until 2029 and their partnership is being expanded to include a commitment to pursue additional opportunities in sourcing and distribution. Furthermore, Alliance Healthcare UK will remain the distribution partner of Boots until 2031. Together, these agreements are expected to create incremental growth, synergies and efficiencies.

The transaction has been approved by the AmerisourceBergen and Walgreens Boots Alliance Boards of Directors and is expected to close by AmerisourceBergen’s fiscal year-end 2021, subject to customary closing conditions and required regulatory approvals.

AmerisourceBergen provides pharmaceutical products, value-driving services and business solutions that improve access to care. Tens of thousands of healthcare providers, veterinary practices and livestock producers trust us as their partner in the pharmaceutical supply chain. AmerisourceBergen is ranked #10 on the Fortune 500, with more than $185 billion in annual revenue. The company is headquartered in Valley Forge, Pa. and has a presence in 50+ countries.

Walgreens Boots Alliance is a global leader in retail and wholesale pharmacy, touching millions of lives every day through dispensing and distributing medicines, its convenient retail locations, digital platforms and health and beauty products. The company has more than 100 years of trusted health care heritage and innovation in community pharmacy and pharmaceutical wholesaling.

J.P. Morgan Securities LLC acted as exclusive financial advisor to AmerisourceBergen. Fully committed financing for the transaction has been provided by JPMorgan Chase Bank, and N.A. Centerview Partners served as financial advisor to Walgreens Boots Alliance.  

The global Cleary team advising Walgreens Boots Alliance included senior counsel Chris Austin (Picture), partner Matt Salerno and associates Paul Imperatore, Kim Petrick, Kate Ginsbern, Calvin Ketchum, Kristen Arn-O’Rourke and law clerk Laura Bournhonesque. Partner Daniel Ilan and associates Brendan Cohen, Natalie Farmer and Claire Halleland advised on intellectual property and privacy matters.  Counsel Kathleen Emberger, Melissa Reid and Francesco De Biasi and senior attorneys Jerome Hartemann and Gianluca Russo advised on employment matters. Partners Corey Goodman and Richard Sultman, counsel Jennifer Maskell and associate JinSol Lee advised on U.S. and international tax matters. Counsel Chase Kaniecki and associate Nathanael Kurcab advised on foreign direct investment matters. Partners Nicholas Levy and Brian Byrne and associates Henry Mostyn and Andrew Kline advised on antitrust matters. Partner Duane McLaughlin and associate Christopher Plante advised on financing matters. Partner Nicolas Grabar and associate Fernando Martinez advised on capital markets matters. Counsel Beau Sterling and associate Madison Bush advised on environmental matters. Senior attorney Jim Corsiglia advised on compliance matters.

The Baker McKenzie team was led by London based partner Helen Bradley, supported by corporate partner Jo Hewitt, IT/Commercial partner Duncan Reid-Thomas and employment Of counsel Paul Harrison.  Further support was provided by Tom Quincey, Jon Tuck, Simon Foster and Dan Relton, in London. 

The Debevoise team for J.P. Morgan Securities included M&A partner Andrew Bab and associate Shlomo Fischer

Morgan Lewis advised AmerisourceBergen with Partners Colby Smith, Jim McKenzie, Bart Bassett, and Vito Petretti, and associate Mehar Jagota.

The Cravath team for AmerisourceBergen was led by partners Damien R. Zoubek and Keith Hallam and included senior attorney Brittain A. Rogers and associates Kelly M. Smercina, Jin-Kyu Baek and Arash Ardalan on M&A matters; partners Andrew J. Pitts and Stephen M. Kessing, senior attorney Sarah F. Rosen and associates Fay E. Krewer and Maria Ricaurte on financing matters; partners Lauren Angelilli and J. Leonard Teti II, senior attorney Kiran Sheffrin and associate Rebecca L. Fine on tax matters; partner Christine A. Varney on regulatory matters; partner David J. Kappos and practice area attorney Anthony N. Magistrale on intellectual property matters; partner Matthew J. Bobby and associate Dixing Tang on executive compensation and benefits matters; and senior attorney Joyce Law and practice area attorney Brian M. Budnick on real estate matters. Paul A. Bryant also worked on M&A matters, and Gary R. Uter also worked on financing matters.

The Maverick Advocaten team included Diederik Schrijvershof and Annabel Kingma.

Involved fees earner: Helen Bradley – Baker McKenzie; Simon Foster – Baker McKenzie; Paul Harrison – Baker McKenzie; Tom Quincey – Baker McKenzie; Duncan Reid-Thomas – Baker McKenzie; Daniel Relton – Baker McKenzie; Jonathan James Tuck – Baker McKenzie; Kristen Arn-O’Rourke – Cleary Gottlieb Steen & Hamilton; Christopher Austin – Cleary Gottlieb Steen & Hamilton; Madison Bush – Cleary Gottlieb Steen & Hamilton; Brian Byrne – Cleary Gottlieb Steen & Hamilton; Brendan Cohen – Cleary Gottlieb Steen & Hamilton; James Corsiglia – Cleary Gottlieb Steen & Hamilton; Francesco De Biasi – Cleary Gottlieb Steen & Hamilton; Kathleen Emberger – Cleary Gottlieb Steen & Hamilton; Natalie Farmer – Cleary Gottlieb Steen & Hamilton; Kate Ginsbern – Cleary Gottlieb Steen & Hamilton; Corey Goodman – Cleary Gottlieb Steen & Hamilton; Nicolás Grabar – Cleary Gottlieb Steen & Hamilton; Claire Halleland – Cleary Gottlieb Steen & Hamilton; Jérôme Hartemann – Cleary Gottlieb Steen & Hamilton; Daniel Ilan – Cleary Gottlieb Steen & Hamilton; Paul Imperatore – Cleary Gottlieb Steen & Hamilton; Chase Kaniecki – Cleary Gottlieb Steen & Hamilton; Calvin Ketchum – Cleary Gottlieb Steen & Hamilton; Andrew Kline – Cleary Gottlieb Steen & Hamilton; Nathanael Felix Kurcab – Cleary Gottlieb Steen & Hamilton; JinSol Lee – Cleary Gottlieb Steen & Hamilton; Nicholas Levy – Cleary Gottlieb Steen & Hamilton; Fernando Martinez – Cleary Gottlieb Steen & Hamilton; Jennifer Maskell – Cleary Gottlieb Steen & Hamilton; Duane McLaughlin – Cleary Gottlieb Steen & Hamilton; Henry Mostyn – Cleary Gottlieb Steen & Hamilton; Kimberly Petrick – Cleary Gottlieb Steen & Hamilton; Christopher Plante – Cleary Gottlieb Steen & Hamilton; Melissa Reid – Cleary Gottlieb Steen & Hamilton; Gianluca Russo – Cleary Gottlieb Steen & Hamilton; Matthew Salerno – Cleary Gottlieb Steen & Hamilton; Beau Sterling – Cleary Gottlieb Steen & Hamilton; Richard Sultman – Cleary Gottlieb Steen & Hamilton; Lauren Angelilli – Cravath Swaine & Moore; Arash Ardalan – Cravath Swaine & Moore; Jin-Kyu Baek – Cravath Swaine & Moore; Matthew Bobby – Cravath Swaine & Moore; Brian Budnick – Cravath Swaine & Moore; Rebecca Fine – Cravath Swaine & Moore; Keith Hallam – Cravath Swaine & Moore; David Kappos – Cravath Swaine & Moore; Stephen Kessing – Cravath Swaine & Moore; Fay Krewer – Cravath Swaine & Moore; Joyce Law – Cravath Swaine & Moore; Anthony N. Magistrale – Cravath Swaine & Moore; Andrew Pitts – Cravath Swaine & Moore; Maria Ricaurte – Cravath Swaine & Moore; Brittain Rogers – Cravath Swaine & Moore; Sarah Rosen – Cravath Swaine & Moore; Kiran Sheffrin – Cravath Swaine & Moore; Kelly Smercina – Cravath Swaine & Moore; Dixing Tang – Cravath Swaine & Moore; J. Leonard Teti II – Cravath Swaine & Moore; Christine Varney – Cravath Swaine & Moore; Damien Zoubek – Cravath Swaine & Moore; Andrew Bab – Debevoise & Plimpton; Shlomo Fischer – Debevoise & Plimpton; Annabel Kingma – Maverick Advocaten; Diederik Schrijvershof – Maverick Advocaten; Barton Bassett – Morgan Lewis & Bockius; Mehar Jagota – Morgan Lewis & Bockius; James McKenzie – Morgan Lewis & Bockius; Vito Petretti – Morgan Lewis & Bockius; Colby Smith – Morgan Lewis & Bockius; Joanna Hewitt – Olswang LLP;

Law Firms: Baker McKenzie; Cleary Gottlieb Steen & Hamilton; Cravath Swaine & Moore; Debevoise & Plimpton; Maverick Advocaten; Morgan Lewis & Bockius; Olswang LLP;

Clients: Alliance Healthcare Services, Inc.; AmerisourceBergen Corporation; J.P. Morgan Securities LLC; Walgreens Boots Alliance;

Naoual Sadouqi

Author: Naoual Sadouqi