Walgreens Unit Close to Roughly $9bn Deal With Summit Health

Warburg Pincus has announced the sale of Summit Health to VillageMD, a merger that creates a multi-payor platform to deliver quality, affordable care for all patients.

A unit of Walgreens Boots Alliance is nearing a deal to combine with a big owner of medical practices and urgent-care centers in a transaction worth roughly $9 billion including debt, according to people familiar with the matter, the latest in a string of acquisitions by big consumer-focused companies aiming to delve deeper into medical care.

The drugstore giant’s primary-care-center subsidiary, Village Practice Management, would combine with Summit Health, the parent company of CityMD urgent-care centers, in an agreement that could be reached as early as Monday, the people said.

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Thomas Carella, Head of Healthcare at Warburg Pincus notes, “We are proud of our role in the creation of a world-class company that is driving innovation in healthcare and delivering superior health outcomes to its communities. Our partnership with CityMD started over 5 years ago, continuing through the formation of Summit Health. VillageMD is a perfect partner for the business and we look forward to the combined company’s next phase of growth.”

Warburg Pincus is investing over $14 billion in healthcare companies, globally. Notable investments include Aetion, Alignment Healthcare, BondVet, Experity, Ensemble, Global Healthcare Exchange, Helix, Intelligent Medical Objects, Modernizing Medicine, Norstella, Qualifacts, Quantum Health, Summit Health, and WebPT.

Source: WSJ

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