WBA Completes An additional Key Milestone in Its Customer-Centric Health care Method to Travel Extensive-Phrase Growth
WBA Also Announces New Leadership Construction for U.S. Enterprise Segment
DEERFIELD, Ill.– Sept. 20, 2022 — Walgreens Boots Alliance, Inc. (Nasdaq: WBA) now introduced the acceleration of its options for comprehensive ownership of Shields Health Remedies (Shields), which is delivering potent economical overall performance, scientific excellence and value-insert contributions to WBA’s company. WBA has entered into a definitive arrangement to acquire the remaining 30% stake (approximately 35% on a fully-diluted foundation) for roughly $1.37 billion, which is based on the exit several agreed at the time of WBA’s 2021 investment in Shields.
Shields is a chief in the huge, quick-increasing market of specialty pharmacy, and is the premier wellbeing system-owned specialty pharmacy integrator in the United States. WBA’s whole acquisition of Shields from other fairness holders (together with private equity agency Welsh, Carson, Anderson & Stowe and Founder and Board Chairman Jack Shields) follows the improve of WBA’s stake to about 70% in September 2021. The transaction is envisioned to near by the finish of the 2022 calendar year.
“Our comprehensive acquisition of Shields will comprehensive one more key milestone as part of our buyer-centric health care strategy to travel sustainable extended-phrase expansion, and we are quite delighted with our partnership and integration with Shields,” mentioned Roz Brewer, CEO, WBA. “We can now make even further progress on our technique as a result of Shields’ built-in design, rising our worth to wellness techniques, expanding entry to payor associates and supporting improved outcomes and lessen costs.”
Shields has ongoing to speedily increase its platform, which has a verified monitor document of increasing affected person outcomes and lowering overall medical expense for wellness techniques and individuals. As an accelerator of overall health program-owned specialty pharmacies, Shields has served a lot more than 1 million sufferers, with just about 80 health and fitness procedure partners representing roughly 1,000 hospitals nationwide.
Shields delivered professional forma sales progress of 57% for the 1st nine months of fiscal 2022, driven by critical agreement wins, even further enlargement of existing partnerships and strong executional target. It will perform a central part as Walgreens continues to align abilities throughout principal care, specialty pharmacy care, publish-acute care and home treatment.
Shields will continue on as a unique company and brand inside Walgreens. John Lucey, co-founder and present-day president of Shields, will direct the business as CEO of Shields, and current Shields CEO Lee Cooper will consider on a new executive purpose inside WBA. Lucey partnered with Jack Shields 10 decades in the past to get started the company and has led its functions for most of that time.
“This transaction validates our tremendous effects to wellness programs and specialty sufferers, as very well as the regular progress and innovation the Shields group has accomplished in excess of the final 10 years,” reported Cooper. “As an significant small business inside of Walgreens, and below John Lucey’s management, Shields will be perfectly-positioned to keep on to scale its unique integrated treatment design for the profit of all stakeholders.”
“We’re grateful for the excellent partnership we have relished about the past a few decades with the Shields administration team, Founder Jack Shields, UMass Memorial Health and fitness and WBA. We significantly appreciate the team’s get the job done to make an magnificent company. From working day a person, it has been a marvelous working experience operating with the Shields and WBA teams,” explained Tom Scully, typical spouse, Welsh, Carson, Anderson & Stowe.
WBA’s U.S. Organization Phase Leadership
Independently, WBA is also asserting a new leadership structure for its U.S. organization phase nowadays. Walgreens President John Standley is leaving the company to pursue other opportunities, and the segment will now be arranged underneath two leaders: Pharmacy led by Cooper, and Retail led by Tracey Brown, president, Walgreens Retail Goods and chief consumer officer. Each will report right to Brewer and provide on the Executive Leadership Staff. Cooper has been appointed to the purpose of govt vice president, Walgreens Pharmacy, commencing Oct. 1, and Standley will keep on being at the corporation right up until Nov. 1 to be certain a clean transition.
“Lee has shown established success in driving organization progress, producing omni-channel consumer activities and constructing significant-overall performance cultures, and will companion incredibly intently with Tracey, who has created significant strides for our organization due to the fact signing up for just in excess of a yr in the past. We are confident that we have the proper management in spot to advance our strategic priorities and be the main husband or wife in reimagining healthcare,” reported Brewer. “We are also incredibly grateful to John Standley for his a lot of contributions, and want to thank him for almost everything he has carried out for our corporation and wish him the extremely very best. He led the group by means of a tough time during the pandemic, and was integral to our unparalleled national rollout of COVID-19 vaccines and tests and to laying the foundation for our transformation to a health care business.”
Cooper is a distinguished leader in the health care market. He previously served as the President and CEO of GE Healthcare, U.S. and Canada, in which he led an $8 billion commercial and provider group via a interval of constant progress. In that position, he partnered with treatment companies, healthcare methods and governments to increase health care high quality, obtain and affordability. Cooper subsequently joined Welsh, Carson, Anderson & Stowe as an running associate targeted on healthcare investments in 2019, right before assuming his position as CEO of Shields in 2020.
“In my new role top Walgreens Pharmacy, I glance ahead to leveraging my deep healthcare working experience to deliver transformative encounters for Walgreens individuals, partners and staff members,” mentioned Cooper.
Sidley Austin LLP acted as lawful advisor for WBA. Ropes & Grey LLP acted as guide authorized advisor for Shields, together with Goodwin Procter LLP and K&L Gates LLP.
About Walgreens Boots Alliance
Walgreens Boots Alliance (Nasdaq: WBA) is an integrated healthcare, pharmacy and retail leader serving millions of clients and sufferers each individual day, with a 170-calendar year heritage of caring for communities.
A trusted, world wide innovator in retail pharmacy with somewhere around 13,000 locations throughout the U.S., Europe and Latin The us, WBA performs a important function in the health care ecosystem. The company is reimagining community healthcare and properly-getting for all as component of its goal – to build far more joyful life through greater health and fitness. Via dispensing medications, strengthening obtain to a large range of health and fitness products and services, offering substantial quality wellness and attractiveness merchandise and supplying whenever, everywhere convenience across its electronic platforms, WBA is shaping the foreseeable future of healthcare.
WBA has far more than 315,000 workforce users and a presence in 9 nations by means of its portfolio of client models: Walgreens, Boots, Duane Reade, the No7 Elegance Firm, Benavides in Mexico and Ahumada in Chile. Moreover, WBA has a portfolio of health care-focused investments located in quite a few nations around the world, which includes China and the U.S.
The business is happy of its contributions to wholesome communities, a nutritious earth, an inclusive workplace and a sustainable marketplace. WBA has been regarded for its dedication to working sustainably: it is an index component of the Dow Jones Sustainability Indices (DJSI) and was named to the 100 Greatest Corporate Citizens 2021.
Much more firm information is out there at www.walgreensbootsalliance.com.
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Source: Walgreens Boots Alliance