BY Richard Summerfield
Walgreens Boots Alliance (WBA) has agreed to acquire the remaining stake that it does not already own in Shields Health Solutions for $1.37bn. According to a statement announcing the deal, the transaction is expected to close by the end of the 2022.
Going forward, Shields will continue to operate as a distinct business and brand within Walgreens. The company delivered pro forma sales growth of 57 percent for the first nine months of fiscal 2022, driven by key contract wins, further expansion of existing partnerships and strong executional focus. Walgreens expects Shields to play a central role in Walgreens’ ongoing success as the company continues to align capabilities across primary care, specialty pharmacy care, post-acute care and home care.
“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,” said Roz Brewer, chief executive of WBA. “We can now make further progress on our strategy through Shields’ integrated model, increasing our value to health systems, expanding access to payor partners and supporting improved outcomes and lower costs.”
Following completion of the deal, John Lucey, co-founder and current president of Shields, will lead the organisation as chief executive. Current Shields chief executive Lee Cooper will take on a new executive role within WBA.
“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,” said Mr Cooper. “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.”
WBA started building a minority investment in privately held Shields in 2019, and that stake reached about 70 percent last year. Shields works with nearly 80 health systems that represent about 1000 hospitals nationwide. WBA has been seeking to shift its focus beyond drugstores, and last year it raised its stake in primary care provider VillageMD to 63 percent. WBA has around 13,000 locations worldwide, and has begun to move into areas such as care delivery and moving to free its instore pharmacists to work more on answering patient questions and helping to manage their health.
News: Walgreens to buy remaining stake in Shields Health for $1.37 billion