PE firm acquires Walgreens infusion biz
DEERFIELD, Ill. – After months of speculation, Walgreens has sold its home infusion business and will go private.
Chicago-based private equity firm Madison Dearborn Partners will acquire a majority stake in the business, according to a joint statement released last week. Madison Dearborn plans to take the company private and appoint Paul Mastrapa, who currently leads the infusion unit, CEO.
“This agreement will enable us to continue to strengthen the Walgreens infusion offering as part of our broad health care portfolio as we work closely with the new company, which will have a dedicated focus on this $14 billion and growing U.S. market,” said Mike Ellis, vice president, Walgreens specialty pharmacy and infusion services. “With Walgreens and MDP’s expertise, capabilities and resources, the new company will have an opportunity to play an even greater role in improving the quality and cost of infusion services.”
Walgreens entered the home infusion space in 2007 when it acquired OptionCare for $850 million. It became the largest provider of home infusion services in 2010 when it swapped its long-term care pharmacy business for OmniCare’s home infusion business. Today, the business employs 4,700 and offers home infusion therapy through 89 pharmacy locations and 100 alternate sites in 40 states.
Terms of the deal were not disclosed. It is expected to close in the second quarter.