Kroger Selling Off Specialty Pharmacy Business
The Kroger Co. has entered into a definitive agreement for the sale of its specialty pharmacy business to CarelonRx, a subsidiary of Indianapolis-based Elevance Health.
“Kroger Specialty Pharmacy has been part of our company since 2012, and we want to thank our management team and associates for their enduring commitment to their patients,” noted Colleen Lindholz, president of Kroger Health. “As part of our regular review of assets, it became clear that our strong specialty pharmacy business unit will better meet its full potential outside of our business. One of the most important considerations was continued operations to ensure minimal disruption to our associates and patients. We are confident this transaction will help the business to grow and deliver better results for patients. We look forward to working toward a smooth transition for associates and patients.”
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Kroger’s specialty pharmacy serves patients with chronic illnesses requiring complex care. These diseases include rheumatoid arthritis, growth hormone deficiencies, multiple sclerosis and bleeding disorders. Clinicians and therapy programs provide patients and prescribers with education and resources, counseling, side-effect management, financial assistance, personalized care, and administrative expertise.
Kroger Specialty Pharmacy is separate from other Kroger pharmacy operations, which include in-store retail pharmacies and The Little Clinics and aren’t part of this transaction.
The sale is subject to customary closing conditions, including regulatory approvals, and is expected to close in the second half of 2024. According to Kroger, the deal isn’t expected to have an impact on the company’s 2024 guidance.
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RBC Capital Markets LLC is serving as financial advisor to the transaction, while Weil, Gotshal & Manges LLP and Arnold & Porter Kaye Scholer LLP are serving as legal advisors to Kroger.
Nearly half a million associates of Cincinnati-based Kroger serve more than 11 million customers daily through a digital shopping experience and retail food stores under a variety of banner names. The company is No. 4 on The PG 100, Progressive Grocer’s 2023 list of the top food and consumables retailers in North America.
