Stefano Pessina, the CEO of Walgreens Boots Alliance Inc (NASDAQ:WBA), is on the quest of seeking global dominance by not only spearheading the company in the right direction but by also making the right inorganic growth moves. Before the completion of the purchase of Alliance Boots, Pessina announced that they plan to buy Rite Aid Corporation (NYSE:RAD), the number three player in the U.S. During the company’s recent earnings call, Pessina was noted to have said that more deals are coming. He noted that vertical integration was necessary for the market, and his company was open even to partnerships.
The announcement made onlookers question who Pessina was? The statement made people curious, though what they should question is how Pessina had maneuvered his career to become a key player in how U.S consumers buy deodorant and Lipitor though he is from Italy. Pessina is mainly known for high-stake negotiation to the bitter accusation. Pessina constructed a global pharmaceutical wholesaling business and has drug stores operating in four continents. His latest move transformed from a wholesaler to a company, which is heavily dependent on U.S retail stores.
When Walgreens started trading at NASDAQ stock exchange, then CEO was Greg Wasson. He was responsible for the company’s biggest acquisition. Stefano Pessina had assembled the acquired company to be fully integrated with their purpose. A month earlier, Wasson announced that he would retire during their joining of NASDAQ Stock Exchange. Stefano Pessina, who had been named interim CEO, was later to become the CEO. This came as a surprise to many. According to many Walgreens’ executives the iconic American brand had been purchased using its money.
Pessina has already been implementing what he does best: more deals. They signed an agreement with AmerisourceBergen Corp. (NYSE:ABC), which translates into drug cost reduction. WBA will also be purchasing medicine directly from Valeant Pharmaceuticals Intl Inc (NYSE:VRX) rather than through wholesalers.
WBA currently has $14.2 billion in debt and will carry approximately $31.2 billion if Rite Aid purchase is approved. This debt can be a huge hindrance to investment, but investors are giving Pessina a benefit of the doubt and might just approve this.
According to the companies CFO from 2004 to 2008 Bill Rudolphsen, he noted going global is good but the company has to maintain its culture. Pessina on the other end is less burdened by culture. Pessina won Walgreens Boots Alliance Inc (NASDAQ:WBA), and he is on track to getting Rite Aid. After this, he will probably look for a next and next deal.