Walgreens Boots Alliance is exploring the sale of Shields Health Solutions after completing its buyout of the specialty pharmacy business in 2022, Bloomberg reported Jan. 23.
The asset could be valued at more than $4 billion and is expected to draw the eyes of healthcare companies and private equity firms, according to unnamed sources "familiar with the matter." Walgreens declined Bloomberg's request for comment.
Walgreens' interest in Shields Health Solutions began in 2019, when it acquired a majority stake in the company. It took majority control in 2021 and sealed the deal in 2022, buying out the rest of the business for $1.37 billion.
At the time, Roz Brewer was still Walgreens' CEO. Shortly after she stepped down in August 2023, the company set out to cut $1 billion in costs and lower capital expenditures by about $600 million.
Selling Shields — which has nearly 80 health system partners representing approximately 1,000 hospitals, including Chicago-based CommonSpirit/San Francisco-based Dignity Health, Salt Lake City-based Intermountain Healthcare and Houston Methodist — would mark a clear departure from Ms. Brewer's tenure, according to Jonathan Palmer, a senior industry analyst with Bloomberg Intelligence.
"A Walgreens divestiture of Shields would represent a pointed reversal of the prior CEO's strategy to diversify," Mr. Palmer said. "A sale makes financial sense to shore up the balance sheet, but the specialty-solutions provider plays in an adjacent market where the strategic rationale for owning it remains strong."