Walgreen Co. has agreed to buy assets of BioScrip's specialty and mail service pharmacy businesses for $225 million.
In the deal, Walgreens is set to acquire BioScrip's network of 30 specialty pharmacy locations in 16 states and Washington, D.C., which primarily serves HIV, cancer and transplant patients. The nation's largest drugstore operator also will acquire certain assets of BioScrip's centralized specialty pharmacy business and traditional mail service pharmacy business that dispenses prescriptions for, among others, drugstore.com, which was acquired by Walgreens in June 2011.
The acquisition "creates a strong network of support for our core drugstore business to provide specialty pharmacy solutions to our patients," Walgreens President and CEO Greg Wasson said in a statement.
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"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," Wasson said. "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."
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 also will maintain its pharmacy benefit management and cash card business.
BioScrip President and CEO Rick Smith said the specialty and mail-order pharmacy market is a growing business, and that Walgreens has the reputation and recognition to handle and further grow that business.
The deal value 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. An additional $60 million may be on the hook, depending on whether it retains certain business included in the acquisition.
Walgreens says they anticipate the transaction will not have a material impact on its earnings per share in fiscal year 2012, and expects it to be modestly accretive in fiscal year 2013.
The transaction is slated to close in April.
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