Pharmacy operator Walgreens Boots Alliance (WBA) has paid $5.2bn to increase its stake in US-based primary care provider VillageMD from 30% to 63%.
VillageMD operates a network of 230 primary care services providers across 15 US markets under the Village Medical brand.
The company will use the proceeds to speed up an initiative to open at least 600 co-located Village Medical at Walgreens outlets by 2025 across 30 US markets, with 1,000 planned by 2027. It also plans to carry out an initial public offering next year.
WBA made an initial $250m investment in VillageMD in July 2020, at the time pledging a total of $1bn in equity and convertible debt financing over the next three years – the precise mix of which was not disclosed – to gave it a 30% stake.
Investment firm Kinnevik invested $75m in the company September 2019 when it led a $100m series B round filled out by Oak HC/FT, Town Hall Ventures and Adams Street Partners. The previous year, VillageMD had received $80m in growth financing from Athyrium Capital Management.
Oak HC/FT led the company’s $36m series A round in 2015, investing alongside unnamed new and existing shareholders.
Tim Barry, chairman and chief executive of VillageMD, said: “Over the past two and a half years, we have worked side-by-side with Walgreens to create an integrated primary care and pharmacy model that accomplishes one primary goal: better patient care.
“WBA’s investment supports our ongoing commitment to providing the highest quality healthcare to all patients, including many people who do not currently have convenient access to a primary care provider. This expanded partnership helps us accelerate our mission to deliver the best healthcare in the world.”
The corporate announced the deal at the same time as its acquistion of a majority stake in CareCentrix, a provider of software which coordinates home medical care.
