Agreement accelerates Shields’ health
system-based platform to improve outcomes and lower healthcare
costs, gives Walgreens provider-focused solution for further
expansion
Walgreens Boots Alliance, Inc. (Nasdaq: WBA) and Shields Health
Solutions today announced that WBA, through its wholly-owned
subsidiary, Walgreen Co., is making a majority investment in
Shields, an industry leader in integrated, health system-owned
specialty pharmacy care. WBA’s investment signifies another step
the company is taking to accelerate innovative healthcare models
for future growth, providing a platform to further develop health
system partnerships and coordinate care for those with complex,
chronic conditions.
The approximately $970 million investment will support the
continued growth of Shields’ health system-based specialty pharmacy
strategy, and builds on a minority equity investment that WBA
announced in July 2019. The new investment gives WBA approximately
71 percent ownership of Shields, with an option to acquire the
remaining equity interests in the future. Shields’ other equity
holders will also have the option to require WBA to purchase the
remaining equity interests, under the agreement.
“Delivering pharmacy and healthcare services in the local
community is one of many ways WBA is working to improve access and
health outcomes, as well as to lower the total cost of care,” said
Roz Brewer, CEO, Walgreens Boots Alliance. “We’re continuing to
make strategic investments in pharmacy and healthcare solutions
that can build on our core pharmacy business, and further expand
our healthcare reach in communities. The Shields model has shown to
improve patient care, and will be complementary to our existing
specialty pharmacy offering, further expanding our capabilities to
best meet the needs of health system partners and patients.”
Over the last two years, Shields has rapidly expanded its
platform, representing more than 1 million specialty patients
across more than 30 disease states, with more than 70 health system
partners nationwide.
“Shields pioneered the integrated, health system specialty
pharmacy approach that has quickly gained traction in the industry.
In doing so, we have consistently delivered exceptional growth and
value through a model that research shows leads to better outcomes
and quality of life,” said Lee Cooper, CEO, Shields Health
Solutions. “WBA’s further investment in Shields is a validation of
our proven growth strategy, and we are pleased they will be an even
more powerful driver in helping us to broaden and deepen our
differentiated model. We will remain focused on driving improved
clinical and economic outcomes for our stakeholders: our valued
health system partners, our patients most in-need, and our
care-focused and talented team.”
Following the completion of the majority investment, Shields
will continue to operate as it does today, managed under current
executive leadership and as a distinct brand and entity.
The companies will also explore opportunities to scale the
Shields business model by adding complementary provider-based
services to the portfolio over time. All of Shields’ current
investors, including private equity firm Welsh Carson, Anderson
& Stowe (WCAS) and founder and Board Chairman Jack Shields,
will remain shareholders.
“Our partnership with the Shields Health Solutions management
team, Jack Shields and WBA has been outstanding,” said Tom Scully,
General Partner, WCAS. Brian Regan, Head of the Healthcare Group
and General Partner, WCAS, added, “WCAS has extensive and deep
relationships with leading health systems and Shields represents a
tremendous example of our ability to successfully partner with them
to scale a business.”
The transaction is subject to the expiration or termination of
applicable waiting periods under the Hart-Scott-Rodino Antitrust
Improvements Act of 1976, as amended, and other customary closing
conditions and is expected to close by the end of the second
quarter of WBA's 2022 fiscal year. Shields’ financials will be
consolidated by WBA, with the transaction projected to be modestly
accretive in its first full year after completion.
Centerview Partners acted as financial advisor for Shields
Health Solutions. Ropes & Gray LLP acted as lead legal advisor
for Shields, along with Goodwin Procter LLP and K&L Gates LLP.
Sidley Austin LLP acted as lead legal advisor for WBA, along with
Weil, Gotshal and Manges and Reed Smith.
About Walgreens Boots Alliance
Walgreens Boots Alliance (Nasdaq: WBA) is a global leader in
retail pharmacy, impacting millions of lives every day through
dispensing medicines, and providing accessible, high-quality care.
With more than 170 years of trusted healthcare heritage and
innovation in community pharmacy, the company is meeting customers'
and patients' needs through its convenient retail locations,
digital platforms and health and beauty products.
Including equity method investments, WBA has a presence in more
than 25 countries, employs more than 450,000 people and has more
than 21,000 stores.
WBA’s purpose is to help people across the world lead healthier
and happier lives. The company is proud of its contributions to
healthy communities, a healthy planet, an inclusive workplace and a
sustainable marketplace. WBA is a Participant of the United Nations
Global Compact and adheres to its principles-based approach to
responsible business. WBA is included in FORTUNE's 2021 list of the
World's Most Admired Companies.* This is the 28th consecutive year
that WBA or its predecessor company, Walgreen Co., has been named
to the list.
More company information is available at
www.walgreensbootsalliance.com.
*© 2021, Fortune Media IP Limited. Used under license.
About Shields Health Solutions
At Shields, improving lives and elevating performance are at the
heart of everything we do. That's why more health system leaders
trust Shields to help them elevate and scale clinical, operational
and financial performance. Not just within specialty pharmacy, but
throughout the entire health system. Working alongside your team,
Shields leverages its proven collaborative care model; integrated
care technologies; and dedicated teams to produce the superior
outcomes your patients deserve and the financial results your health
system demands. Together, we elevate performance where it matters
most — expanding payer and drug access; improving therapy
management and care coordination; delivering unsurpassed patient
experiences; and generating the net operating income you need to
accelerate growth. Learn more about how Shields elevates outcomes
and performance at shieldshealthsolutions.com.
Cautionary note regarding forward-looking statements
All statements in this report that are not historical including,
without limitation, those regarding the closing and anticipated
effects of the transaction, are forward-looking statements made
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Words such as “expect,” “likely,”
“outlook,” “forecast,” “preliminary,” “pilot,” “project,” “intend,”
“plan,” “goal,” “target,” “aim,” “continue,” “ “believe,” “seek,”
“anticipate,” “upcoming,” “may,” “possible,” and variations of such
words and similar expressions are intended to identify such
forward-looking statements.
These forward-looking statements are not guarantees of future
performance and are subject to risks, uncertainties and
assumptions, known or unknown, that could cause actual results to
vary materially from those indicated or anticipated. These risks,
assumptions and uncertainties include those described in Item 1A
(Risk Factors) of our Annual Report on Form 10-K for the fiscal
year ended August 31, 2020 and in other documents that we file or
furnish with the Securities and Exchange Commission. If one or more
of these risks or uncertainties materializes, or if underlying
assumptions prove incorrect, actual results may vary materially
from those indicated or anticipated by such forward-looking
statements. All forward-looking statements we make or that are made
on our behalf are qualified by these cautionary statements.
Accordingly, you should not place undue reliance on these
forward-looking statements, which speak only as of the date they
are made.
We do not undertake, and expressly disclaim, any duty or
obligation to update publicly any forward-looking statement after
the date of this release, whether as a result of new information,
future events, changes in assumptions or otherwise.
(WBA-GEN)
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+1 262 309 2488
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