Walgreens will make a $970 million majority investment in Shields Health Solutions, a specialty pharmacy services provider for hospitals and health systems, the company said Sept. 21.
The investment will give Walgreens about 71 percent ownership of Shields with the option to acquire the remaining equity interests in the future.
"We're continuing to make strategic investments in pharmacy and healthcare solutions that can build on our core pharmacy business, and further expand our healthcare reach in communities. The Shields model has shown to improve patient care, and will be complementary to our existing specialty pharmacy offering, further expanding our capabilities to best meet the needs of health system partners and patients," Roz Brewer, CEO of Walgreens Boots Alliance, said in a news release.
The investment builds on a minority equity investment Walgreens made in Shields in July 2019. Shields partners with more than 70 health systems in the U.S. to provide specialty pharmacy services.
Walgreens said that after the investment is complete, Shields will continue to operate as it does today with the same executive leadership. The deal is expected to close by the end of Walgreens' second fiscal quarter in 2022.
"We will remain focused on driving improved clinical and economic outcomes for our stakeholders: our valued health system partners, our patients most in-need, and our care-focused and talented team," Lee Cooper, CEO of Shields, said in the news release.
The two companies also said they plan to explore opportunities to add provider-based services over time.
Read the full news release here.