LONDON — Alliance Boots said it has signed an agreement to buy Farmacias Ahumada, which comprises two major retail pharmacy networks in Latin America.
Those businesses span 1,400 stores, and have combined revenues of around 835 million pounds, or $1.4 billion at current exchange.
Boots noted that Farmacias Benavides is the third largest retail pharmacy chain in Mexico, with around 1,000 stores in 150 cities. It employs 7,800 people.
Farmacias Ahumada is among the three largest retail pharmacy chains in Chile, with around 400 stores in 98 cities, employing 3,900.
The transaction is expected to complete in the third quarter of 2014, subject to regulatory approvals. Financial terms were not disclosed.
Stefano Pessina, executive chairman, Alliance Boots, said the acquisition would give his company 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.”
He said Boots was “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.”