In Walgreens Newest Divestiture, Drugstore Chain Sells $330M Stake In Infusion Enterprise

In Walgreens Latest Divestiture, Drugstore Chain Sells $330M Stake In Infusion Business

Walgreens Boots Alliance has offered its remaining stake in residence infusion companies supplier Possibility Care Well being for proceeds of about $330 million.

“The corporate intends to make use of the proceeds primarily for debt pay down, continued assist of WBA’s strategic priorities and transformation to a consumer-centric healthcare firm,” Walgreens mentioned in an announcement Thursday night time. “The transaction is one other decisive motion WBA is taking to unlock worth and additional simplify the corporate’s portfolio.”

To make certain, Walgreens has been decreasing its stake in different companies within the final two years underneath chief government Roz Brewer to boost cash for different priorities reminiscent of its multi-billion greenback guess on doctor-staffed major care clinics connected to drugstores.

Lower than a month in the past, Walgreens offered shares of AmerisourceBergen, a big drug distributor, for proceeds of $694 million. That sale of AmerisourceBergen inventory adopted one other sale of the distributor’s inventory final December for proceeds of $1 billion, decreasing its stake within the firm to lower than 20%.

In the meantime, Walgreens has been spending billions of {dollars} to develop its major care enterprise and has used a mixture of fairness and debt to take action. Most notably, Walgreens has invested in VillageMD, which final 12 months introduced plans to purchase Summit Well being for $8.9 billion to develop doctor-staffed clinics throughout the nation. The transaction contains investments from Walgreens, which already owns about half of VillageMD, and Cigna’s well being companies enterprise Evernorth.

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The mixture comes as Walgreens and rivals CVS Well being, Walmart and Amazon push deeper into offering medical care in drugstores and different retail settings.

Amazon earlier this 12 months closed on its $3.9 billion acquisition of One Medical, which operates greater than 220 major care places of work in greater than 28 U.S. markets. In the meantime, CVS Well being, which owns the well being insurer Aetna, has been performing some wheeling and dealing of its personal. CVS purchased the house care firm Signify Well being for $8 billion and final month accomplished its acquistion of Oak Avenue Well being for $10.6 billion in money, including a big community of doctor-staffed clinics primarily utilized by seniors.

Different well being insurers, like UnitedHealth Group, have lengthy been gobbling up physician practices and different major care operations together with pressing care and surgical procedure facilities through its Optum well being companies enterprise. And Walmart has opened a number of new doctor-staffed “Walmart Well being” facilities in a number of states and is doubling the variety of such services by the top of subsequent 12 months to round 80.

Possibility Care Well being, which was often known as Walgreens Infusion Providers till 2015, is recently attempting to purchase the house well being and hospice agency Amedisys for greater than $3 billion. However that deal bought some competitors earlier this week when an unsolicited all-cash buyout supply for Amedisys emerged from UnitedHealth’s Optum.

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