Catalyst Will Buy Walgreens’ PBM for $525 Million
By Steve Davolt - March 9, 2011
In a prime example of the consolidation among PBMs that continues to gather momentum, Catalyst Health Solutions, Inc. announced today it is acquiring Walgreen Health Initiatives, Inc., the PBM unit of Walgreens Co., for $525 million.
The acquisition represents a huge expansion for publicly traded Catalyst, based in Rockville, Md., more than doubling its membership from 7 million to 18 million. Catalyst said it will “maintain a significant presence in the Chicago area, where WHI is based.”
“This is a significant milestone for Catalyst and an important next step in our long-term growth strategy,” David T. Blair, CEO of Catalyst, said in a statement. “Our combined expertise and best-in-class solutions will provide immediate value to our clients and members.”
The cash transaction will be underwritten with financing from Goldman Sachs Lending Partners LLC, Citi, SunTrust Bank and Wells Fargo Bank, N.A. As a bonus, Catalyst agreed to provide PBM services to Walgreens’ 244,000 employees, dependents and retirees. Pending regulatory approval, the deal is expected to close by June 2011.
No comments:
Post a Comment