How Walgreens was bought by Walgreen (NYSE:WAG)

From the start, the merger was a major win for Walgills shareholders. 

Walgreens, a family-owned company, has been a leader in the specialty pharmacy market for decades, and it has become a major force in the health care sector. 

With the merger, Walgros would become the third largest specialty pharmacy chain in the United States, behind only Walgarts in New York City and Walgart in Atlanta. 

As the industry continues to evolve, the need for a diversified, highly specialized pharmacy is a key factor in the need to diversify the supply chain, said David DeMartini, director of retail consulting at the research firm IBISWorld. 

“There are a number of issues, and a lot of it has to do with pricing,” DeMartinis said.

“So a company that wants to sell a product in a different category to a company with a higher margin or a lower margin could find themselves in a situation where they have to negotiate lower prices.” 

In a statement, Walgreen said the acquisition would “enable us to expand and diversify our portfolio, and increase our market leadership in a variety of complementary and specialty pharmacy products.” 

The company said it plans to work closely with Walgreen’s medical professionals to identify opportunities to strengthen and improve the company’s products and services, and to support its business, and its shareholders, through a comprehensive transformation. 

 In November, Walgoards CEO Jim Pohle resigned amid a controversy involving the company hiring a former drugstore worker to help run a pharmacy in the Atlanta area. 

He resigned amid allegations that he inappropriately used taxpayer money for personal expenses. 

The allegations centered around allegations that Pohles family had used personal funds to buy a home in the area.


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