NYSTRS opened a new position in Walgreens Boots Alliance
Key takeaways from the NYSTRS's 4Q14 holdings (Part 2 of 5)
NYSTRS and Walgreens Boots Alliance
The NYSTRS (New York State Teachers’ Retirement System) started a new position in Walgreens Boots Alliance (WBA). It increased its stakes in Kinder Morgan (KMI). The fund sold off positions in WellPoint Inc. (WLP). It decreased positions in Occidental Petroleum (OXY) and Apache Corp. (APA).
The fund bought 1,727,633 shares of Walgreens Boots Alliance. It accounts for 0.33% of its total 4Q14 portfolio.
Overview of Walgreens Boots Alliance
Walgreens Boots Alliance is a firm. It was created by the merger of Walgreens and Alliance Boots in December 2014. The alliance brought together two of the biggest companies with iconic brands and a variety of healthcare services.
Walgreens Boots Alliance has a presence in over 25 countries. It employs over 370,000 people worldwide. As stated by Walgreens Boot Alliance’s management, the firm is:
the global leader in pharmacy-led, health, and well-being retail with over 12,800 stores in 11 countries
the largest global pharmaceutical wholesale and distribution network with over 340 distribution centers delivering to more than 180,000 pharmacies, doctors, health centers, and hospitals each year in 19 countries
the world’s largest purchaser of prescription drugs and many other health and well-being products
Walgreens and Alliance Boots complete merger
In December 2014, US drugstore chain Walgreens and Switzerland-based Boots Alliance completed the second step of the merger in order to form Walgreens Boots Alliance. The merger created the world’s first pharmacy-led health and well-being enterprise. Now, the stock will trade in the stock exchange under the symbol “WBA.”
The two-step merger was announced in June 2012. The firms completed the first step of the merger in August 2012. Walgreens invested $4 billion in cash and 83.4 million shares of common equity for a 45% stake in Alliance Boots.
The second step of the merger was completed in December 2014. It was completed following shareholder approval. Walgreens acquired 55% of the remaining stake for $3.5 billion in cash and 144 million shares of common stock.
WBA is mainly comprised of three divisions:
Retail Pharmacy USA
Retail Pharmacy International
Pharmaceutical Wholesale
Walgreens is now a fully-owned subsidiary of Walgreens Boots Alliance after the merger. Greg Wasson, the CEO of Walgreens, stated that “The creation of Walgreens Boots Alliance is a crucial milestone for both Walgreens and Alliance Boots, combining iconic brands, complementary geographic footprints, shared values and a heritage of trusted health care services through pharmaceutical wholesaling and community pharmacy care, each dating back more than 100 years.”
In the next part of this series, we’ll explore NYSTRS’s position in Kinder Morgan.
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