Walgreens to buy Option Care for $850M

DEERFIELD, Ill. and BUFFALO GROVE, Ill. Walgreen Co. and Option Care today announced a definitive agreement in which Walgreens will acquire Option Care in a cash transaction for $19.50 per share. With the assumption of some debt, the transaction has a total enterprise value of approximately $850 million. The acquisition will create national access to Walgreens specialty pharmacy and home infusion services for patients and payors.

Option Care, based in Buffalo Grove, Ill., provides a full spectrum of specialty pharmacy and home infusion services from a national network of more than 100 pharmacies (including 61 that are company owned) in 34 states. Its services are used by more than 40,000 patients with acute or chronic conditions that can be treated at home, in a physician's office or at one of Option Care's ambulatory infusion suites. Option Care's services also include respiratory therapy and home medical equipment at some locations.

Walgreens Home Care currently operates 45 facilities (including 20 home infusion pharmacies) in 18 states, and Walgreens Specialty Pharmacy operates six locations, including Medmark, a Walgreens Specialty Pharmacy; and Schraft's, a Walgreens Specialty Pharmacy, which focuses on fertility medications and services.

"This acquisition clearly establishes us as a national player in specialty pharmacy and home infusion services," said Jeffrey Rein, ceo of Walgreens. "Option Care offered the best opportunity for strengthening our position as a full-service specialty pharmacy provider, especially in areas such as hemophilia, immune deficiency and oncology. By blending its capabilities with our current operations, we'll be able to provide patient care on a nationwide basis in the patient's home, at their physician's office or at one of our infusion suites."