DEERFIELD, In poor health. & BOSTON–(BUSINESS WIRE)–Walgreens Boots Alliance, Inc. (Nasdaq: WBA) and Shields Well being Options at this time introduced that WBA, via its wholly-owned subsidiary, Walgreen Co., is making a majority funding in Shields, an trade chief in built-in, well being system-owned specialty pharmacy care. WBA’s funding signifies one other step the corporate is taking to speed up revolutionary healthcare fashions for future progress, offering a platform to additional develop well being system partnerships and coordinate look after these with complicated, continual circumstances.
The roughly $970 million funding will help the continued progress of Shields’ well being system-based specialty pharmacy technique, and builds on a minority fairness funding that WBA introduced in July 2019. The brand new funding provides WBA roughly 71 p.c possession of Shields, with an choice to amass the remaining fairness pursuits sooner or later. Shields’ different fairness holders will even have the choice to require WBA to buy the remaining fairness pursuits, below the settlement.
“Delivering pharmacy and healthcare providers in the local people is certainly one of some ways WBA is working to enhance entry and well being outcomes, in addition to to decrease the entire price of care,” stated Roz Brewer, CEO, Walgreens Boots Alliance. “We’re persevering with to make strategic investments in pharmacy and healthcare options that may construct on our core pharmacy enterprise, and additional broaden our healthcare attain in communities. The Shields mannequin has proven to enhance affected person care, and can be complementary to our current specialty pharmacy providing, additional increasing our capabilities to finest meet the wants of well being system companions and sufferers.”
During the last two years, Shields has quickly expanded its platform, representing greater than 1 million specialty sufferers throughout greater than 30 illness states, with greater than 70 well being system companions nationwide.
“Shields pioneered the built-in, well being system specialty pharmacy strategy that has shortly gained traction within the trade. In doing so, we have now persistently delivered distinctive progress and worth via a mannequin that analysis exhibits results in higher outcomes and high quality of life,” stated Lee Cooper, CEO, Shields Well being Options. “WBA’s additional funding in Shields is a validation of our confirmed progress technique, and we’re happy they are going to be an much more highly effective driver in serving to us to broaden and deepen our differentiated mannequin. We’ll stay centered on driving improved scientific and financial outcomes for our stakeholders: our valued well being system companions, our sufferers most in-need, and our care-focused and gifted group.”
Following the completion of the bulk funding, Shields will proceed to function because it does at this time, managed below present govt management and as a definite model and entity.
The businesses will even discover alternatives to scale the Shields enterprise mannequin by including complementary provider-based providers to the portfolio over time. All of Shields’ present buyers, together with non-public fairness agency Welsh Carson, Anderson & Stowe (WCAS) and founder and Board Chairman Jack Shields, will stay shareholders.
“Our partnership with the Shields Well being Options administration group, Jack Shields and WBA has been excellent,” stated Tom Scully, Basic Associate, WCAS. Brian Regan, Head of the Healthcare Group and Basic Associate, WCAS, added, “WCAS has intensive and deep relationships with main well being methods and Shields represents an incredible instance of our capability to efficiently associate with them to scale a enterprise.”
The transaction is topic to the expiration or termination of relevant ready intervals below the Hart-Scott-Rodino Antitrust Enhancements Act of 1976, as amended, and different customary closing circumstances and is anticipated to shut by the tip of the second quarter of WBA’s 2022 fiscal 12 months. Shields’ financials can be consolidated by WBA, with the transaction projected to be modestly accretive in its first full 12 months after completion.
Centerview Companions acted as monetary advisor for Shields Well being Options. Ropes & Grey LLP acted as lead authorized advisor for Shields, together with Goodwin Procter LLP and Ok&L Gates LLP. Sidley Austin LLP acted as lead authorized advisor for WBA, together with Weil, Gotshal and Manges and Reed Smith.
About Walgreens Boots Alliance
Walgreens Boots Alliance (Nasdaq: WBA) is a world chief in retail pharmacy, impacting tens of millions of lives day by day via dishing out medicines, and offering accessible, high-quality care. With greater than 170 years of trusted healthcare heritage and innovation in group pharmacy, the corporate is assembly clients’ and sufferers’ wants via its handy retail areas, digital platforms and well being and sweetness merchandise.
Together with fairness technique investments, WBA has a presence in additional than 25 international locations, employs greater than 450,000 individuals and has greater than 21,000 shops.
WBA’s goal is to assist individuals internationally lead more healthy and happier lives. The corporate is happy with its contributions to wholesome communities, a wholesome planet, an inclusive office and a sustainable market. WBA is a Participant of the United Nations World Compact and adheres to its principles-based strategy to accountable enterprise. WBA is included in FORTUNE’s 2021 checklist of the World’s Most Admired Corporations.* That is the twenty eighth consecutive 12 months that WBA or its predecessor firm, Walgreen Co., has been named to the checklist.
Extra firm data is obtainable at www.walgreensbootsalliance.com.
*© 2021, Fortune Media IP Restricted. Used below license.
About Shields Well being Options
At Shields, bettering lives and elevating efficiency are on the coronary heart of all the pieces we do. That is why extra well being system leaders belief Shields to assist them elevate and scale scientific, operational and financial efficiency. Not simply inside specialty pharmacy, however all through all the well being system. Working alongside your group, Shields leverages its confirmed collaborative care mannequin; built-in care applied sciences; and devoted groups to provide the superior outcomes your sufferers deserve and the financial outcomes your well being system calls for. Collectively, we elevate efficiency the place it issues most — increasing payer and drug entry; bettering remedy administration and care coordination; delivering unsurpassed affected person experiences; and producing the web working revenue you might want to speed up progress. Be taught extra about how Shields elevates outcomes and efficiency at shieldshealthsolutions.com.
Cautionary notice relating to forward-looking statements
All statements on this report that aren’t historic together with, with out limitation, these relating to the closing and anticipated results of the transaction, are forward-looking statements made pursuant to the secure harbor provisions of the Personal Securities Litigation Reform Act of 1995. Phrases reminiscent of “anticipate,” “possible,” “outlook,” “forecast,” “preliminary,” “pilot,” “venture,” “intend,” “plan,” “aim,” “goal,” “goal,” “proceed,” “ “consider,” “search,” “anticipate,” “upcoming,” “could,” “doable,” and variations of such phrases and related expressions are meant to establish such forward-looking statements.
These forward-looking statements aren’t ensures of future efficiency and are topic to dangers, uncertainties and assumptions, identified or unknown, that would trigger precise outcomes to fluctuate materially from these indicated or anticipated. These dangers, assumptions and uncertainties embody these described in Merchandise 1A (Threat Elements) of our Annual Report on Type 10-Ok for the fiscal 12 months ended August 31, 2020 and in different paperwork that we file or furnish with the Securities and Alternate Fee. If a number of of those dangers or uncertainties materializes, or if underlying assumptions show incorrect, precise outcomes could fluctuate materially from these indicated or anticipated by such forward-looking statements. All forward-looking statements we make or which are made on our behalf are certified by these cautionary statements. Accordingly, you shouldn’t place undue reliance on these forward-looking statements, which communicate solely as of the date they’re made.
We don’t undertake, and expressly disclaim, any obligation or obligation to replace publicly any forward-looking assertion after the date of this launch, whether or not because of new data, future occasions, modifications in assumptions or in any other case.
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