CINCINNATI - The Kroger Co . (NYSE: NYSE:KR), the American retail company, has reached a definitive agreement to sell its specialty pharmacy business to CarelonRx, a subsidiary of Elevance Health.
The announcement was made today, detailing that this strategic move will allow the specialty pharmacy, which provides services to patients with chronic illnesses requiring complex care, to potentially grow and serve patients more effectively outside of Kroger's structure.
The specialty pharmacy in question has been a part of Kroger since 2012, offering clinical expertise and comprehensive therapy programs to patients with conditions such as rheumatoid arthritis, growth hormone deficiencies, multiple sclerosis, and bleeding disorders.
Colleen Lindholz, President of Kroger Health, acknowledged the dedication of the pharmacy's team and expressed confidence that the sale would result in minimal disruption to both associates and patients, while fostering growth and improved patient outcomes.
It is important to note that this transaction will not include Kroger's in-store retail pharmacies and The Little Clinics, as the specialty pharmacy operates independently from these other entities.
The sale is subject to customary closing conditions, including regulatory approvals, and is anticipated to be finalized in the second half of 2024. Kroger has stated that this sale is not expected to affect its financial guidance for the year 2024.
Financial advisory services for the transaction are being provided by RBC Capital Markets, LLC, with Weil, Gotshal & Manges LLP and Arnold & Porter Kaye Scholer LLP serving as legal advisors to Kroger.
Kroger, known for its commitment to feeding the human spirit, serves over 11 million customers daily through its digital shopping experience and various retail food stores. The company has set ambitious goals, including creating zero hunger and zero waste communities by 2025.
The information regarding this sale is based on a press release statement from The Kroger Co.
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