Walgreens creates new health division
DEERFIELD, Ill. Walgreens announced today that it has created a new division to manage its health centers and pharmacies. The Walgreens Health and Wellness division will also manage the continued rollout of Take Care Health Clinics located at Walgreens drug stores nationwide.
As part of the new division’s strategy, Walgreens also announced plans to acquire two leading operators of worksite health centers, I-trax of Chadds Ford, Penn., parent company of CHD Meridian Healthcare and privately held Whole Health Management of Cleveland. Upon closing of the transactions, Walgreens will have more than 500 worksite and retail health centers in 40 states, including its Take Care Health Clinics.
Walgreens estimates the current potential market for worksite health centers and pharmacies includes more than 7,600 corporate campuses of 1,000 employees or more.
Walgreens will acquire I-trax in an approximately $278 million cash transaction, including the assumption of about $18.3 million in net debt. An affiliate of Walgreens will commence a tender offer within 10 business days for all outstanding common stock of I-trax at $5.40 per share.
Terms of Whole Health Management’s acquisition by Walgreens weren’t disclosed. Both acquisitions are expected to close within 60 days, subject to certain regulatory approvals.
“These announcements mark an important strategic initiative for us,” said Walgreens chairman and ceo Jeffrey Rein. “Walgreens Health and Wellness division will marry our store clinics and pharmacies with worksite health centers and pharmacies. Our unique offering will allow large employers and health plans to provide care to employees and plan members at their worksites, and to dependents and retirees through our Take Care Health Clinics at local Walgreens drugstores. Over the last 15 years we’ve become more convenient for the customer with our ‘Main and Main’ drug store locations. Today, we’re redefining ‘Main and Main’ to include the worksite and bring us that much closer to customers.