Chicago private-equity firm Madison Dearborn Partners will acquire a majority stake in Walgreen’s infusion-services business, Walgreen Co. said in a release Tuesday.
When the deal closes, Walgreen’s infusion-services business will become an independent, privately held company. Walgreen, based in the Chicago suburb of Deerfield, Ill., will continue to hold a minority interest in the company.
Financial terms were not disclosed in the release. Reuters reported in December that the deal was anticipated to be worth more than $1 billion, according to two sources familiar with the deal.
Infusion therapy involves administering medicine and nutrients to people through a needle. Walgreen’s business provides home and alternate treatment sites for infusion services. The business has 89 infusion pharmacies and 110 alternate treatment sites in 40 states, and about 4,700 employees.
“This agreement will enable us to continue to strengthen the Walgreens infusion offering as part of our broad health-care portfolio as we work closely with the new company,” said Mike Ellis, vice president of Walgreen’s specialty pharmacy and infusion services. “… The new company will have an opportunity to play an even greater role in improving the quality and cost of infusion services.”