Chillin' out till it needs to be funded
This Draft was no different with Boots CEO Pessina managing to land a third of the 8% Walgreens equity swapped in exchange for this all share deal. the 8% equity paid for 45% of Boots and the other equity in the large pharmacy chain competitor will cost another $9.5B. Walgreens will also add up all of Boots debt on to its combined books at that point.
Boots’ apparently is already a hot property in China. KKR owned Boots thus gets to travel across the pond and ship its No 7 cosmetics to US stores of Walgreens and Duane Reed. A rare victory for PE the deal took a long time coming and followsother big buys in Healthcare and retail this year. Goldman Sachs and Lazard fronted the deal for Walgreens and dealt with a boutique called Centerview Partners on the other side.
FT mentions Walgreens belongs to the genus of Gobble de gook, known in the Boots home country as a Hedgehog!