Walgreens to Pay $1.3B for Shields Health

Walgreens Boots Alliance is accelerating its plans for full possession of Shields Health Solutions, paying $1.37 billion to amass the remaining 30% stake within the firm.

“Our full acquisition of Shields will complete another major milestone as part of our consumer-centric healthcare strategy to drive sustainable long-term growth, and we are very pleased with our partnership and integration with Shields,” Roz Brewer, Walgreens’ CEO, stated in a news release Tuesday (Sept. 20).

Read extra: Walgreens Looks to Healthcare and Digital for Growth

Walgreens invested $970 million in Shields — a specialty pharmacy chain — final yr, gaining a 70% stake within the firm. Shields works with practically 80 well being techniques representing 1,000 hospitals, and has served greater than 1 million sufferers, per the discharge.

Following the acquisitions, Shields will proceed “as a distinct business and brand within Walgreens,” the discharge stated. Shields’ co-founder and President John Lucey will grow to be the CEO of Shields, whereas present Shields CEO Lee Cooper will tackle a brand new government position at Walgreens.

“This transaction validates our tremendous impact to health systems and specialty patients, as well as the consistent growth and innovation the Shields team has achieved over the last decade,” Cooper stated. “As an important business within Walgreens, and under John Lucey’s leadership, Shields will be well-positioned to continue to scale its unique integrated care model for the benefit of all stakeholders.”

PYMNTS famous earlier this month that Walgreens’ strikes are a part of a broader pattern of shops delving deeper into healthcare. For instance, Walmart introduced Sept. 7 that it was teaming with UnitedHealth Group to supply digital healthcare companies by a 10-year partnership.

See additionally: Healthcare Becomes Fertile Ground for Big Retail’s Payments Ambitions

The collaboration will initially give attention to value-based look after seniors through Medicare Advantage, the place charges are paid in accordance with the precise outcomes of the remedy and suppliers’ efforts. The knowledge element will use Optum’s analytics, because the supplier is owned by UNH.

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