Alliance Boots buys Farmacias Ahumada (Fasa)

Alliance Boots today announces that it has signed an agreement to acquire Farmacias Ahumada ("FASA"). The acquisition comprises two main businesses, which together operate over 1,400 stores, with combined revenues of around £835 million. Farmacias Benavides is the third largest retail pharmacy chain in Mexico with around 1,000 stores, and Farmacias Ahumada is one of the three largest retail pharmacy chains in Chile with around 400 stores.

The transaction, which is subject to regulatory approvals, is expected to complete in the third quarter of 2014.  According to Stefano Pessina, Executive Chairman of Alliance Boots, "this acquisition will give Alliance Boots a major presence in the attractive Latin American market, one of our priority areas for investment. It is also a further step towards reaching a truly global footprint. The well-positioned retail pharmacy businesses of Farmacias Ahumada and Farmacias Benavides will be great additions to our Group’s unique portfolio of retail, product and service brands around the world. We are confident in the high potential for sustainable growth and value generation that will be unlocked by this acquisition, including the opportunity for consumers in Mexico and Chile to access for the first time leading Boots product brands, such as our renowned skincare and cosmetics ranges".

The transaction will be effected by Alliance Boots launching an all cash tender offer for the outstanding fully diluted share capital of Farmacias Ahumada  whose shares are listed on the Santiago Stock Exchange. Grupo Casa Saba, S.A.B. de C.V., has irrevocably undertaken, via a wholly owned subsidiary, to tender its holding of 97.89% of FASA’s share capital to the offer. The tender offer will be conditional upon certain customary conditions precedent. FASA itself owns 95.62% of the outstanding fully diluted share capital of Farmacias Benavides S.A.B. de C.V., the operator of the Farmacias Benavides retail pharmacy business.

Alliance Boots is a leading international, pharmacy-led health and beauty group delivering a range of products and services to customers. It has presence in more than 25 countries and employs over 108,000 people.