By John Kell
Walgreen Co. (WAG) has signed a pact with a health-care-focused
private-equity firm to sell a majority stake in the drugstore
retailer's subsidiary that manages more than 360 worksite health
centers.
On Thursday, Walgreen said Water Street Healthcare Partners
would buy a majority interest in Take Care Employer Solutions, a
Walgreen business. Take Care's health centers are staffed by
physicians, nurse practitioners and other medical professionals,
and offer pharmacy, primary care, chronic-condition management and
other services.
Financial terms of the deal, which isn't expected to have a
material impact on Walgreen's fiscal-year earnings, weren't
disclosed. The transaction is expected to close by the middle of
2014.
Water Street, meanwhile, also signed an agreement to invest in
CHS Health Service, which is another provider of worksite health
centers. Once the deal is closed, Water Street intends to merge
Take Care and CHS to form a new company. It will own a majority
interest in the venture, while Walgreen will own a "significant
minority interest."
Walgreen and other major drugstore chains in recent years have
aimed to expand their role in the healthcare sector by offering
more services at their pharmacies, while also signing pacts or
takeovers into adjacent pockets of the industry.
Walgreen said Healthcare Clinic, which has more than 400
in-store locations that formerly operated under the Take Care name,
aren't part of the deal and the drugstore chain will continue to
manage those clinics.
Write to John Kell at john.kell@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires