VillageMD, a unit of Walgreens Boots Alliance, will purchase a majority stake in Summit Well being-CityMD for $8.9 billion, the businesses introduced Monday.
Summit Well being-CityMD offers major, specialty and pressing care throughout the Northeastern U.S. and in Oregon. Following the acquisition, which is predicted to shut Jan. 1, VillageMD and Summit could have greater than 680 areas in 26 markets.
VillageMD CEO Tim Barry referred to as the deal an “epic milestone” in a information launch.
Walgreens will make investments $3.5 billion to assist the acquisition and personal 53% of VillageMD shares. The deal will increase the pharmacy chain’s earnings: Walgreens is elevating its 2023 EBITDA targets to between -$50 million to $25 million, in contrast with the beforehand focused -$240 million to -$220 million.
Cigna subsidiary Evernorth can also be concerned within the deal; the businesses didn’t disclose the monetary particulars.
“Including our experience and geographic protection to VillageMD’s confirmed value-based major care method will improve the lives of so many sufferers and physicians throughout the nation, serving to to decrease healthcare prices and enhance the well being of our communities,” Summit Well being CEO Jeff Alter stated within the information launch.
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