Alliance Boots’ tie-up with Walgreens created savings above expectations of $236m (£143m) in the six months to February 28, 2014.

Walgreens’ results for the six months to February 28 showed savings of $236m (£143m) from synergies created in its 2012 partnership with UK health and beauty giant Alliance Boots.

Walgreens president and chief executive Greg Wasson said: “Our joint synergy programme is expected to exceed its second-year estimate.”

Walgreens said the full second-year synergies are expected to deliver savings of $375m to $425m (£226m to £257m) up from the original forecast of $350m to $400m (£212m to £242m).

In the first year of the merger, to August 31, 2013 synergies were $154m (£93m), above the estimated $125m to $150m (£76m to £91m).

Alliance Boots contributed 8 cents per diluted share to Walgreens’ second-quarter 2014 adjusted results, the company said, and estimated that this would rise to 13 to 14 cents in the third quarter.

Walgreens bought 45% of Alliance Boots in 2012 for $6.5bn (£4bn) in cash and shares with a view to merge next year.

 

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