Retail News Breaks
Walgreens unveils global management roles for partnership with Alliance Boots
September 18th, 2012
DEERFIELD, Ill. – In the wake of its acquisition of 45% of Alliance Boots, Walgreen Co. has reconfigured its management to advance its global strategy.
The nation's largest drug chain said Tuesday that executive vice president and chief financial officer Wade Miquelon has been given an additional role as president of international, leading a new Value Creation Services and International Division. Miquelon will serve as senior leader for president and chief executive officer Greg Wasson in collaborating with Alliance Boots management team.
"Wade's extensive international experience, and the central role he played in bringing our companies together, gives him both the experience and expertise to lead our efforts in working closely with Alliance Boots to create the first global pharmacy-led health and well-being enterprise as he also continues to lead our finance team as chief financial officer," Wasson said in a statement.
Robert Zimmerman, currently Walgreens' chief strategy officer, will now lead a new global mergers and acquisitions team as senior vice president of international and international chief administration officer. Walgreens said Zimmerman also will serve on the Alliance Boots board with his new role as Walgreens' key project leader for the global partnership.
"As our chief strategy officer for several years, Bob has been critical in helping us to evolve our core growth strategies, which is why I've asked him to take on this role heavily focused on ensuring we execute with excellence on this transformative and critical transaction," Wasson stated.
Slated to join Walgreens as senior vice president and chief strategy officer is Brad Fluegel, a former senior executive at WellPoint Inc. and Aetna Inc.
Previously, Fluegel served as executive in residence at Health Evolution Partners. Before that, he was executive vice president and chief strategy and external affairs officer at health benefits provider Wellpoint and held the post of senior vice president of national accounts and vice president of enterprise strategy at health insurer Aetna.
Walgreens said that besides serving as chief strategy officer, Fluegel will lead the company's project management office and corporate consulting team and work with Zimmerman on venture capital efforts.
"Brad's wealth of strategic experience and expertise is perfect — and will be vital — as we accelerate our strategy to advance community pharmacy, and we are excited to have him on the team," Wasson commented.
Also on Tuesday, Walgreens said it has created "global synergy" teams with Alliance Boots to realize $100 million to $150 million in savings expected from the strategic partnership in the first year and $1 billion by 2016.
"These new roles will allow us to move forward aggressively, working closely together with Alliance Boots, to implement our strategic partnership and realize the extensive synergies from the acquisition, as well as accelerate our core growth strategies to achieve our purpose to help people get, stay and live well," Wasson stated. "The changes also reflect Walgreens high level of confidence in our senior management team, with a mix of internally and externally developed talent, to execute the strategic partnership with Alliance Boots and major initiatives across the company efficiently and effectively."
Walgreens closed its initial investment in Alliance Boots on Aug. 2, buying a 45% equity stake in the global pharmacy and health and beauty aids retailer and wholesaler for $6.7 billion in cash and stock. Completion of the first step of the two-phase partnership agreement, announced June 19, came about a month earlier than the projected Sept. 1 closing date.
Under the deal, Walgreens has the option to acquire the remaining 55% of Alliance Boots in about three years for $9.5 billion in cash and stock.
With the first part of the deal finalized, Wasson, Miquelon, Zimmerman and Walgreens executive vice president and general counsel Thomas Sabatino join the Alliance Boots board, while Alliance Boots executive chairman Stefano Pessina and Dominic Murphy, director and member of investment firm Kohlberg, Kravis Roberts & Co. (KKR), a large stakeholder in Boots, join the Walgreens board.
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