DEERFIELD, Ill. (AP) - Drugstore operator Walgreen Co. said Monday it plans
to buy two operators of worksite health centers as part of a new health and
wellness division.
Walgreen said it will acquire I-trax Inc. for $5.40 per share, or $223.1
million based on 41.3 million shares outstanding as of Nov. 7. Walgreen values
the deal at $278 million, including the assumption of $18.3 million in debt.
Additionally, Walgreen will buy privately held Whole Health Management.
Terms of that deal were not disclosed.
Both acquisitions are expected to close within 60 days, pending regulatory
approval.
The new division will manage health centers and pharmacies at large company
worksites. After the deals close, Walgreen will operate more than 500 worksite
and retail health centers in 40 states.
"These announcements mark an important strategic initiative for us," said
Walgreen CEO Jeffrey Rein. "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."
Chadds Ford, Pa.-based I-trax, through its subsidiaries, CHD Meridian
Healthcare and ProFitness Health Solutions, provides worksite health services,
pharmacy and disease management services and fitness programming for more than
160 companies, including BMW, Toyota and Lowe's.
Cleveland-based Whole Health Management provides primary and urgent care,
wellness programs and other occupational health services through 69 worksite
centers for 27 clients, including Continental Airlines, Harrah's Entertainment
and Sprint.
Morningstar analyst Mitchell Corwin called the acquisitions and new division
"an interesting growth avenue" for Walgreen.
"The near-term financial impact of these moves is minimal, but they shed
greater light on the firm's strategic direction as it transitions from a retail
drugstore operator to a broader health care services company," he said in a note
to investors.
Walgreen shares fell 22 cents to $35.74 in Monday trading. I-trax shares
jumped $1.33, or 34.1 percent, to $5.23.
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