October 12, 2022 – Walgreens Boots Alliance, Inc. has announced the acceleration of its plans to acquire full ownership of CareCentrix, expanding its reach into the growing homecare sector and advancing its long-term growth healthcare strategy.
WBA has entered into a definitive agreement to acquire the remaining 45% stake for approximately $392 million, which is based on the exit multiple agreed to at the time of WBA’s initial majority investment announcement in CareCentrix.
CareCentrix is an industry leader in the $75 billion post-acute and home care industry, providing care coordination and outsourced benefit management services. WBA’s full acquisition of CareCentrix follows WBA’s 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.
CareCentrix currently manages care for more than 19 million members through over 7,400 provider locations, offering a suite of services on an integrated basis to support home care models – including home nursing, durable medical equipment, home infusion and in-home palliative care. By helping to accelerate the transition of care to patients’ homes, CareCentrix provides one of the core elements to support value-based care on behalf of health plans and providers.
In WBA’s fiscal year 2021, CareCentrix delivered pro forma sales of $1.5 billion. The company will continue as a distinct business and brand within Walgreens following the full acquisition.
“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.”
Additionally, Driscoll will assume a new role as executive vice president and president, U.S. Healthcare at WBA, including Walgreens Health, later this month. He will report directly to Brewer and serve on WBA’s executive committee. CareCentrix Chief Financial Officer, Steve Horowitz, will assume the role of CareCentrix CEO.
Driscoll will oversee U.S. Healthcare for WBA as the company expands into larger, faster-growing profit pools that drive synergies across the care continuum, including provider enablement and managed service organizations, primary care, population health, home health, post-acute care, specialty pharmacy and retail pharmacy. U.S. Healthcare encompasses integrations with WBA’s market-leading healthcare partners, including VillageMD, Shields Health Solutions and CareCentrix, as well as the organic Walgreens Health business, which focuses on population health through initiatives such as Walgreens Health Corners.