Walgreen Seeks To Acquire Remaining 55% Of Alliance Boots - Quick Facts

(RTTNews) - Walgreens (WAG) has exercised its option to complete the second step of its strategic transaction with Alliance Boots GmbH ahead of the original option period, which was between February and August 2015.

The transaction would fully combine both the companies to form the first global pharmacy-led, health and wellbeing enterprise. This follows the launch of the companies' long-term strategic partnership in June 2012, when Walgreens purchased a 45 percent stake in Alliance Boots, with the option to proceed to a full combination by acquiring the remaining 55 percent of Alliance Boots in three years' time (Step 2).

Walgreens plans to complete the transaction in the first quarter of calendar 2015.

In relation with moving forward with Step 2, Walgreens announced that a new holding company to be formed in connection with the transaction would be named Walgreens Boots Alliance, Inc., and would include 4 divisions: Walgreen Co.; Boots; Pharmaceutical Wholesale and International Retail; and Global Brands.

With the strategic plan, the combined company is establishing goals for fiscal 2016 including revenue of between $126 billion and $130 billion and adjusted earnings per share of $4.25 to $4.60. In addition, the combined company expects to exceed the prior established $1 billion synergy goal.

The company's board also authorized a new capital allocation policy that includes a $3 billion share buyback program through the end of fiscal 2016. Further, the board declared a 7.1 percent quarterly dividend increase to 33.75 cents per share.