Walgreens Boots Alliance has completed the previously announced agreement to acquire a 40% minority stake in Sinopharm Holding GuoDa Drugstores Co., Ltd. (GuoDa), a leading retail pharmacy chain in China.
The company acquired the minority stake in GuoDa through a capital increase worth RMB2.767 billion (approximately $416 million), and will account for the stake as an equity method investment.
“We believe GuoDa holds a strong position in the sector, and as a global pharmacy-led health and beauty enterprise, we are well positioned to support its further growth ambition,” said Stefano Pessina, Walgreens Boots executive vice chairman and CEO. “We believe there is great potential in working together to play a transforming role in the evolving Chinese retail pharmacy market.”
Sinopharm Holding Guoda Drugstore Co., Ltd. was established in 2004 and headquartered in Shanghai. It currently operates more than 3,800 retail pharmacies across around 70 cities, and employs close to 20,000 people in China.