Walgreens: US healthcare land-grab intensifies with $9bn deal
Americans with minor ailments are not the only ones seeking treatment from walk-in urgent care centres. Walgreens Boots Alliance is hoping the sector — a fast-growing segment of US healthcare — can provide a much needed salve for its own aches and pains. VillageMD, a unit of the US drugstore operator, is buying Summit Health-CityMD, in a deal worth $8.9bn, including debt.
It is not a straightforward transaction. Walgreens had hoped to use proceeds from the sale of its struggling Boots chain in the UK to fund its push into healthcare services. Having shelved disposal plans earlier this summer, it now needs to get creative.
Under the terms of deal, parent Walgreens will put $3.5bn into the takeover in a mix of debt and equity. Cigna’s healthcare unit Evernorth is also investing. It will become a minority owner of VillageMD. Walgreens will remain the majority shareholder with a 53 per cent stake.
This story originally appeared on: Financial Times - Author:Faqs of Insurances
