Walgreen Co. (NYSE: WAG) (NASDAQ: WAG) and BioScrip, Inc. (NASDAQ:
BIOS), a national provider of pharmacy and home health services, today
announced that they have entered into a definitive agreement under which
Walgreens would acquire certain assets of BioScrip's community specialty
pharmacies and centralized specialty and mail service pharmacy
businesses and BioScrip would receive a total deal value of
approximately $225 million. This includes approximately $170 million in
cash at closing and retention by BioScrip of associated accounts
receivable and working capital liabilities of approximately $55 million,
based on BioScrip's balance sheet values at Dec. 31, 2011. Up to an
additional $60 million in purchase price may be payable based on events
related directly or indirectly to Walgreens retention of certain
business included in the transferred businesses.
This acquisition fits Walgreens strategy to advance community pharmacy
and bring additional specialty pharmacy products and services closer to
patients. The acquisition will also help grow Walgreens centralized
specialty and mail service pharmacy operations.
For BioScrip, the transaction will provide the ability to continue to
focus on and expand in its core strategic growth areas—infusion pharmacy
and home health services. BioScrip will also maintain its pharmacy
benefit management and cash card business.
"Together, BioScrip's clinically focused community specialty pharmacies
and access to additional limited distribution drug therapies, and
Walgreens existing nationwide network of retail and health system
pharmacies create a strong network of support for our core drugstore
business to provide specialty pharmacy solutions to our patients," said
Walgreens President and CEO Greg Wasson. "Many of our patients will
benefit from expanded access to new and limited distribution drugs for
chronic conditions such as HIV, cancer and organ transplant. This
acquisition also significantly expands our nationwide reach to an
additional half-million patients with chronic and complex health
conditions who have strong clinical relationships with their current
BioScrip pharmacy."
BioScrip President and CEO Rick Smith stated, "Our specialty pharmacy
clinicians have established a respected reputation for high levels of
customer service. The recognition of our clinical expertise in complex,
chronic programs has resulted in consistent growth of this business.