Alliance Boots in deal with Beijing Med-Pharm for GP Corp

Beijing Med-Pharm says that an entity formed by it and Alliance Boots, Europe's leading pharmacy-led health and beauty group, has agreed to acquire a 50% interest in Guangzhou Pharmaceuticals Corp, the third largest pharmaceutical wholesaler in China.

Alliance BMP, the UK-based investment vehicle formed by Alliance Boots and Beijing Med-Pharm, will take a 50% interest in GP Corp for 545.0 million renminbi ($69.0 million) in cash, constituting of a direct capital injection into the latter. Alliance Boots will own 80% of Alliance BMP and Beijing Med-Pharm 20%. Alliance BMP will hold four of the eight GP Corp board seats. David Gao, who played a key role in the negotiations for the transaction with GP Corp, will continue as chief executive of Beijing Med-Pharm, and will serve as chairman of GP Corp. The formation of Alliance BMP also creates a vehicle through which Beijing Med-Pharm and Alliance Boots can make additional investments in China.