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Walgreens Expands Its Work-Site Health Care Business

March 17, 2008
Related Topics: Mergers and Acquisitions, Health and Wellness, Workforce Planning, Latest News
The Deerfield, Illinois-based drugstore chain said it will acquire I-trax Inc., the Chadds Ford, Pennsylvania-based parent of CHD Meridian Healthcare Inc., and privately held Whole Health Management of Cleveland, pending regulatory approval.

The transactions are expected to be finalized within 60 days, Walgreens said.

Once the transactions are complete, Walgreens will manage about 350 work-site health centers and pharmacies. Clients that Walgreens would add as a result of the two health center operator acquisitions include Eastman Chemical Co., Florida Power & Light Co. and Toyota Motor Corp.

The acquisitions would bring Walgreens its first work-site health clinics, although it manages several work-site pharmacies for large employers.

As for its retail health clinic business, it acquired Take Care Health Systems last year and operates 146 Take Care Health Clinics in its drugstores.

For the near future, the work-site health centers will continue to operate as they have under the I-trax and Whole Health models, even though they are be managed by the new Walgreens Health and Wellness division. The division manages Walgreens health centers and pharmacies at large employer work sites as well as the Take Care Health Clinics.

Eventually, Walgreens will build a consistent brand identity for all the clinics, according to the company.

Walgreens said it will offer $5.40 per share and pay about $278 million in cash and assume about $18.3 million in debt to acquire I-trax, which reported $143 million in 2007 revenue.

Filed by Kristin Gunderson Hunt of Business Insurance, a sister publication of Workforce Management. To comment, e-mail editors@workforcecom.

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