A year ago in October, Walgreens Boots Alliance, Inc. (Walgreens) paid $330 million for a 55% stake in CareCentrix, which connects patients with at-home care through its extensive national network of providers. The majority-stake acquisition helped Walgreen push deeper into healthcare. The deal also came with the option for Walgreens to purchase the remaining stake at a later date.
Just this past week, Walgreens followed through. The healthcare and retail giant purchased the remaining 45% stake in CareCentrix for approximately $392 million, which is based on the exit multiple agreed to at the time of Walgreens’ initial majority investment announcement. In Walgreens’ fiscal year 2021, CareCentrix delivered pro forma sales of $1.5 billion.
Walgreens said the move expands its reach into the growing homecare sector and advances its long-term growth strategy, but it’s not the only major company moving into the post-acute and home health market, which is experiencing significant growth due to aging demographics and the desire for the flexibility to receive care at home. Last month, the retail pharmacy and healthcare giant CVS Health struck an $8 billion deal to acquire Signify Health. Optum, a significant part of UnitedHealth Group, paid $6 billion for LHC Group, Inc. in March. Humana Inc, the health insurance giant, paid $5.7 billion for the 60% stake it did not own in Kindred at Home in April 2021.
