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Alliance Boots has signed an agreement to acquire Farmacias Ahumada. The acquisition comprises two main businesses, which together operate over 1,400 stores, with combined revenues of around £835m. Farmacias Benavides is the third largest retail pharmacy chain in Mexico with around 1,000 stores, while 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.
Commenting on the transaction, Stefano Pessina, Executive Chairman of Alliance Boots, said: “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 skin care and cosmetics ranges.”