Walgreens Boots Alliance Inc (NYSE:WAG) has selected Stefano Pessina as the company’s permanent CEO. He has been the company’s temporary chief executive since the company became the biggest pharmaceutical buyer.
Stefano Pessina has been manning the helm of the conglomerate since the end of 2014 when he was given the interim position. It was also about the same time the two drug store units from Great Britain and the United States decided to merge. He played a key role in the union which involved Alliance Boots and Walgreen Co.
He took over after the retirement of former Walgreens Boots Alliance Inc (NYSE:WAG) CEO, Greg Wasson, who stepped down just as the two businesses were completed their merger. The two firms struck the deal after Walgreen promised to purchase the stake that it did not already own in Alliance Boots for about $16 billion paid out in cash and stock. Prior to the dealings, Walgreens had purchased 45% of Alliance Boots shares in 2012.
The resulting conglomerate can spread its influence on a global scale and, therefore, can negotiate prices with health care providers and drug makers. The company’s drug stores have been busy expanding their reach by offering more variety of healthcare services as well as opening new clinics.
So far the conglomerate has more than 350 distribution centers and more than 13,200 stores that span beyond 11 countries. According to the company’s Executive Chairman James Skinner, the union has been a success. He also added that Pessina was chosen because he is capable of leading the firm with the same capacity. On Thursday, the company reported third-quarter earnings of $1.02 per share.
In April, the company announced plans to shut down about 200 U.S. stores as part of a strategy to bring down the costs. During the announcement, the firm revealed that it has shut down nine stores so far and is looking to terminate an additional 70 to 80 stores before the year ends.
