Walgreens buys rest of CareCentrix for $400 million; taps health exec
Walgreens Boots Alliance Inc. is accelerating plans to acquire full ownership of CareCentrix and naming CareCentrix’s CEO to lead U.S. healthcare.
The drugstore giant has entered into a definitive agreement to acquire the remaining 45% stake in post-acute and home care provider CareCentrix for approximately $392 million, which is based on the exit multiple agreed to at the time of WBA's initial majority investment in CareCentrix.
Walgreens’ full acquisition of CareCentrix follows its 55% majority investment in the company, which closed on August 31, 2022. The full acquisition is subject to limited customary closing conditions and is expected to close by March 2023.
“We continue to see strong results and potential for growth from our partnership with CareCentrix. Our full acquisition further accelerates our transformation to become a consumer-centric healthcare company, leveraging innovative platforms that extend our capabilities into fast-growing segments of healthcare,” said Roz Brewer, CEO, Walgreens Boots Alliance. “CareCentrix is key to offering services to our patients at every stage of the care continuum, and to driving long-term, sustainable growth as part of our U.S. healthcare strategy.”
“We are thrilled to be part of WBA’s vision to transform local healthcare and develop new valued-based models,” said John Driscoll, CEO, CareCentrix. “A major component of the future of healthcare is in the home, and CareCentrix is critical to enabling WBA to serve patients wherever and however works best for them.”
CareCenrtrix CEO Driscoll named U.S. healthcare president
Additionally, Driscoll will assume a new role as executive VP and president, U.S. Healthcare at Walgreens Boots Alliance, including its Walgreens Health platform, later in October 2022. He will report directly to CEO Roz Brewer and serve on Walgreens’ executive committee. CareCentrix CFO Steve Horowitz,will assume the role of CareCentrix CEO.
Driscoll will oversee U.S. healthcare, which encompasses integrations with Walgreens’ healthcare partners, including VillageMD, Shields Health Solutions and CareCentrix, as well as the proprietary Walgreens Health business, which focuses on population health through initiatives such as Walgreens Health Corners.
[Read more: Walgreens to pay $1.4 billion to buy rest of Shields Health; leadership shakeup]
“John brings a wealth of experience and leadership across many different aspects of healthcare, all of which will play an important role in delivering on our vision to reimagine local healthcare for all,” Brewer said. “He has demonstrated high levels of success by building winning teams, and rapidly scaling technology-enabled solutions and analytics that make healthcare more personal and effective.”
“It is an honor to take this leadership position with a company committed to integrating the key pieces to deliver better healthcare at lower costs to so many,” Driscoll said. “I look forward to working closely with Roz and WBA’s U.S. Healthcare leadership team to create a truly differentiated experience for consumers across their healthcare journey, while bringing greater value to payors, providers and other partners.”
Prior to CareCentrix, Driscoll served as president at Castlight Health, a digital healthcare company, and before that, as group president for new markets at Medco, a $70 billion or pharmacy benefit manager. He led product development and was part of the executive team that spun Medco out of Merck. Driscoll was also responsible for Medco’s entry into Medicare.
Based in Deerfield, Ill., Walgreens Boots Alliance is an integrated healthcare, pharmacy and retail company with approximately 13,000 locations across the U.S., Europe and Latin America. It operates in nine countries through its portfolio of consumer brands: Walgreens, Boots, Duane Reade, the No7 Beauty Company, Benavides in Mexico and Ahumada in Chile. Additionally, Walgreens Boots Alliance has a portfolio of healthcare-focused investments located in several countries, including China and the U.S.