Stefano Pessina picks up £1.5 billion from Boots sale but will carry on dealing
Billionaire businessman and pharmacist Stefano Pessina was £1.5 billion richer today as he sold Alliance Boots to US rival Walgreens.
However, the 73-year-old Italian has no plans to hang up his white coat, as he revealed that he will remain with the new enlarged company as executive vice-chairman in charge of strategy and future acquisitions.
He decision comes as the new company, Walgreens Boots Alliance, decided to keep the headquarters in the US — as president Greg Wasson revealed that he had launched several investigations into a possible “inversion” to move the US business overseas.
Today he said: “We undertook an extensive and rigorous analysis with a team of leading experts to determine the most optimal — and sustainable — course of action.”
But he admitted: “We considered benefits such as substantial financial advantages… but it potentially put the company at risk [including] protracted controversy with the IRS and potential litigation.”
The deal sees Walgreens buy the 55% stake in Alliance Boots it does not already own for £6 billion. It means Walgreens has paid £10.3 billion for Alliance, buying the first 45% stake in 2012 for £4.3 billion.
Pessina and private equity group KKR bought Boots in 2007 in a debt-backed bid for £10 billion, putting in £1.25 billion of their own money.
The two sellers will take home about two and a half times what they paid out initially.
It means KKR and Pessina share about £3 billion of today’s £6 billion, and about £2.5 billion of the £4.3 billion paid in 2012. Debt levels now sit at around £5 billion.
