Walgreens Boots Alliance has agreed to market most of its pharmacy distribution unit to drug wholesaler AmerisourceBergen for $6.5 billion to concentrate on its main retail small business and expanding its well being-care offerings.

The Alliance Health care unit distributes well being-care merchandise and services to additional than one hundred fifteen,000 pharmacies, hospitals, and other well being vendors, working in 13 international locations, generally in Europe.

The offer introduced on Wednesday calls for AmerisourceBergen to shell out about $6.3 billion in funds and two million of its shares for Alliance Health care. Under an existing agreement, Walgreens sources branded and generic prescription drugs from AmerisourceBergen in the U.S.

The transaction “is a logical move next the good results of our lengthy-term strategic romantic relationship with AmerisourceBergen which has been a potent and trusted companion due to the fact 2013,” Walgreens CEO Stefano Pessina claimed in a information launch. “The transaction will gasoline bigger foreseeable future investments to increase and completely transform our main retail pharmacy and healthcare companies.”

In its most recent quarter, Walgreens created $6 billion in revenue from Alliance Health care and the thirty{312eb768b2a7ccb699e02fa64aff7eccd2b9f51f6a579147b7ed58dbcded82a2} stake it owns in AmerisourceBergen. U.S. revenue for Walgreens’s U.S. retail-pharmacy unit have been up around 4{312eb768b2a7ccb699e02fa64aff7eccd2b9f51f6a579147b7ed58dbcded82a2} to $27 billion.

As The Wall Avenue Journal experiences, Walgreens’s transfer to exit most of its wholesale small business will come as faces difficulties similar to the coronavirus pandemic. It has also been “seeking to give clients additional reasons to go to [its retail] destinations as Amazon pushes into the prescription-drug small business.”

The business has partnered with VillageMD to open up clinics with key-care medical doctors at Walgreens sites throughout the U.S. over the subsequent five years.

For AmerisourceBergen, “The offer is made to expand AmerisourceBergen’s presence in Europe, as Alliance is one particular of the premier wholesalers on the continent,” the Fiscal Periods described.

“Today’s announcements will expand our access and options in pharmaceutical distribution and insert to AmerisourceBergen’s breadth and depth of global producer services,” the company’s CEO, Steven Collis, claimed.

In investing Wednesday, Walgreens shares rose 4.5{312eb768b2a7ccb699e02fa64aff7eccd2b9f51f6a579147b7ed58dbcded82a2} to $43.03. The sale of Alliance Health care is predicted to insert to its modified earnings for each share in the superior-teens percentage following it closes by the conclude of fiscal 2021.

AmerisourceBergen, drug distribution, Wellbeing Care, retail pharmacy, Stefano Pessina, Walgreens Boots Alliance