- Thomson Reuters
Walgreens Boots Alliance just announced a deal to buy Rite Aid, and there is one clear winner on Wall Street.
Swiss bank UBS is the sole adviser to the buyer, Walgreen Co., and is the sole provider of bridge financing for the deal.
The deal values Rite Aid at $9.4 billion. The deal is valued at $17.2 billion including debt.
That should generate a monster payday, totaling up to $65 million according to Jeffery Nassof of M&A consulting firm Freeman and Co.
He told Business Insider that advisory fees should come in at about $25 million. The bridge financing for the deal could net the bank another $25 million to $40 million, he said.
Rite Aid shares soared more than 40% on Tuesday after The Wall Street Journal reported that a deal was close. The companies will host a conference call on Wednesday morning to discuss the transaction.
The deal marks a big win for UBS, which ranked 11 for US M&A before the deal’s announcement with about 11% of market share.
The deal is also a win for Citigroup, which is advising Rite Aid on the transaction. It has become a relative rarity to have just one adviser on either side on such big deals.
The bank was not immediately available for comment.