April 16--Analysts and investors should no longer think of Walgreens as only a U.S. company, acting CEO Stefano Pessina told analysts Thursday.
"I understand that it is very tempting to still view us a U.S. business," Pessina told analysts gathered in New York for the last day of a two-day conclave. "However, when I talk opportunities, I'm talking on a global basis. And I would ask you to think that way as well."
Deerfield-based Walgreen completed its purchase of Switzerland-based Alliance Boots on Dec. 31, forming the new holding company Walgreens Boots Alliance.
As the company looks to expand globally in countries such as China, it also plans to cut $1.5 billion in costs by the end of 2017. Total restructuring costs are expected to be between $1.6 billion to $1.8 billion, Chief Financial Officer George Fairweather said at the event, including employee severance costs of $425 million to $475 million.
Analysts pressed Pessina, the Italy-born nuclear engineer turned drugstore mogul and executive chairman of Alliance Boots, for more information on potential acquisitions or joint ventures.
For the next several months, Pessina said, the company will focus on integrating Walgreens' U.S. business with Alliance Boots' global operations.
"We are open to any kind of commercial joint venture" or merger or acquisition deal "in principle," Pessina said. "It depends on circumstances and the value that we can create."
Pessina, the company's largest shareholder with nearly 140 million shares, also updated analysts on the search for a new CEO. For now, Pessina has replaced former CEO Greg Wasson, who departed after the deal closed.
"Finding the right person is proving more difficult than we might have hoped," Pessina said, "but not more difficult than we expected it to be."
Walgreens is working with consultants to find a permanent CEO. Consultants have created a list of potential candidates that executives are reviewing carefully, Pessina said.
ehirst@tribpub.com
