Walgreens to buy remaining stake in CareCentrix for $392M
Walgreens Boots Alliance said Tuesday its plan to acquire the remaining 45% stake in CareCentrix less than two months after becoming the home health company’s majority owner.
The Deerfield, Illinois-based company is paying a total of $722 million to quickly boost its presence in the industry. Walgreens completed its initial $330 million deal with CareCentrix in late August, taking a 55% share in the company that helps transition patients from hospitals to their homes. The remaining stake will cost the company $392 million and the transaction is expected to close by March 2023, according to a news release.
CareCentrix coordinates home care for 19 million members through 7,400 provider locations. The company will remain a distinct entity within Walgreens after the deal is completed.
“Our full acquisition further accelerates our transformation to become a consumer-centric healthcare company, leveraging innovative platforms that extend our capabilities into fast-growing segments of healthcare,” Walgreens CEO Roz Brewer said in the news release.
CareCentrix CEO John Driscoll will become executive vice president and president of U.S. healthcare at Walgreens later this month. The home health benefit firm’s chief financial officer, Steve Horowitz, will lead CareCentrix as CEO.
This deal further solidifies the pharmacy chain’s growing healthcare footprint. In September, the company agreed to spend $1.37 billion to acquire the remaining stake in specialty pharmacy company Shields Health Solutions. Last year, the company’s health segment invested $5.2 billion in primary-care startup VillageMD to become the majority owner.