Comments on: Understanding Mergers, Acquisitions, and Spinoffs

By: Juanita

Juanita — Mon, 03 Aug 2009 21:28:28 +0000

Walgreen Co. (The "company" or "Walgreens") was incorporated as an Illinois corporation in 1909 as a successor to a business founded in 1901. Walgreens is the nation's largest drugstore chain (based on sales) and recorded its 33rd year of consecutive sales and earnings growth. During the year, the company opened or acquired 563 stores for a net increase of 478 stores after relocations and closings, not including 58 locations acquired from Option Care, Inc. The total number of locations at August 31, 2007 was 5,997 located in 48 states and Puerto Rico. Aggressive growth will continue as the company anticipates operating more than 7,000 locations in 2010.

Retail organic growth continues to be our primary growth vehicle, but we carefully consider unique acquisition opportunities when they are a good fit with the existing store base. In 2007, for example, the company acquired Option Care, Inc., a specialty pharmacy and home infusion services provider.

Prescription sales continue to become a larger portion of the company's business. This year prescriptions accounted for 65.0% of sales compared to 64.3% last year. Third party sales, where reimbursement is received from managed care organizations, government and private insurance, were 94.8% of prescription sales compared to 93.1% a year ago. Overall, Walgreens filled approximately 583 million prescriptions in 2007, an increase of 10% from the previous year.

Walgreens pharmacy sales are expected to continue to grow due, in part, to the aging population, the introduction of lower priced generics and the continued development of innovative drugs that improve quality of life and control healthcare costs. Also, the increase in generic introductions continues to boost the number of prescriptions filled. Although generics reduce sales dollars, they save both patients and payors money and generally offer higher gross profit than brand name drugs.

During fiscal 2007, Walgreens' market share in 59 of the top 60 front-end categories increased, as compared to all food, drug and mass merchandise competitors. Today, 139.1 million people live within two miles of a Walgreens and 5.0 million shoppers walk into a Walgreens store daily.

During fiscal year 2007 the company added $1.8 billion to property and equipment, which included approximately $1.425 billion related to stores, $184.2 million for distribution centers, and $176.5 million related to other corporate items. Capital expenditures for fiscal 2008 are expected to be more than $2.0 billion, excluding acquisitions.

In fiscal 2007, the company opened a distribution center located in Anderson, South Carolina. This is the first of a new-generation of distribution centers, which will increase productivity 20% from the last generation. A second new-generation center in Windsor, Connecticut is planned to open in fiscal 2009.

Walgreens plans to increase business by investing in prime locations, new technology and customer service initiatives in fiscal 2008.

(b) Financial information about industry segments.

The company is principally in the retail drugstore business and its operations are within one reportable segment.

(i) Principal products produced and services rendered.

The drugstores are engaged in the retail sale of prescription and non-prescription drugs and general merchandise. General merchandise includes, among other things, beauty care, personal care, household items, candy, photofinishing, greeting cards, seasonal items and convenience foods. Customers can have prescriptions filled at the drugstore counter, as well as through the mail, by telephone and via the Internet.

By: Timmy C

Timmy C — Mon, 03 Aug 2009 19:20:48 +0000

You have a real shot with your stats Sweetie. Your biggest problem is that Wharton is overrun with applications from Asians, and that looks like the pool you'll be competing with. Though you have an advantage coming from Indiana, if you were in NY, NJ or CA it would look much dimmer.

A few thoughts: don't send them the laundry list you gave us here. More is less Sweetie.No one wants to hear about declined jobs and dance marathons. Make the jobs look less like daddy having set you up in them. There is a backlash against rich kids at Penn.

Remember, your application needs to make the admissions people like you. There is a bias against Asian candidates who seem to take themselves very seriously. Lighten it up Sweetie!

By: Rahul M

Rahul M — Mon, 03 Aug 2009 19:13:04 +0000

http://www.investopedia.com/articles/03/081303.asp – 44k -
try it this isr

By: Jayson Kane

Jayson Kane — Mon, 03 Aug 2009 18:10:36 +0000

vince would have eventually found another hogan but it wouldnt have been orndorff though he is great he didnt have the mic skills of hogan.

awa wouldnt have made it as big as the wwe for the 1 reason that vern respected the territories and would have never have took over them like vince did.

as for the second biggest aquisition i would have to say its HBK sure at the time he might not have been much but he has by far done the most out of any other old awa guy.

By: Lysergic Surfer

Lysergic Surfer — Mon, 03 Aug 2009 13:15:41 +0000

Best way to fight this is to think for yourself and be a doer rather than a spectator in life.

On Mother's Day a few years ago I witnessed someone take pictures of his fancy car rather than his nicely dressed [and now deceased] mother. I thought it was a strange thing to do, especially because he lived 400 miles from home and could take pictures of his car any day of the year. Now both the car and his mother are gone, and he only has pictures of the car….sad