Walgreens Boots Alliance, Inc. (WBA), the holding company that owns the retail pharmacy chain Walgreens, has announced a new majority investment for Shields Health Solutions valued at $970 million.
Shields Health Solutions is a specialty pharmacy that partners with hospitals and health systems to provide integrated care management for special disease states. Over the last two years, Shields has rapidly expanded its platform, representing more than one million specialty patients across more than 30 disease states, with more than 70 health system partners nationwide.
WBA will acquire approximately 71% ownership of Shields, with an option to acquire the remaining equity interests in the future. All of Shields’ current investors, including private equity firm Welsh, Carson, Anderson & Stowe (WCAS) and founder and Board Chairman Jack Shields, will remain shareholders in the company.
Following the completion of the majority investment, Shields will continue its normal operations as a distinct brand and entity. The companies will explore opportunities to scale the Shields business model by adding complementary provider-based services to the portfolio over time.
This deal will pair nicely with WBA’s acquisition of iA, a leading provider of software-enabled pharmacy automation solutions. Its platform can run the prescription fulfillment process from end-to-end, helping pharmacies manage fulfillment and inventory to help lower costs, improve efficiency, and provide comprehensive Rx tracking and real-time support. That deal was announced back in January. It’s been a busy year for the pharmacy giant, and 2021 isn’t over yet.
