Walgreen Co. to buy I-trax Inc. and Whole Health Management

Drugstore operator Walgreen Co. said today it plans to buy two operators of worksite health centers as part of a new health and wellness division.

Walgreen said it will acquire I-trax Inc. for $5.40 per share, or $223.1 million based on 41.3 million shares outstanding as of Nov. 7. Walgreen values the deal at $278 million, including the assumption of $18.3 million in debt.

Additionally, Walgreen will buy privately held Whole Health Management. Terms of that deal were not disclosed.

Both acquisitions are expected to close within 60 days, pending regulatory approval.

The new division will manage health centers and pharmacies at large company worksites. After the deals close, Walgreen will operate more than 500 worksite and retail health centers in 40 states.

"These announcements mark an important strategic initiative for us," said Walgreen CEO Jeffrey Rein. "Our unique offering will allow large employers and health plans to provide care to employees and plan members at their worksites, and to dependents and retirees through our Take Care Health Clinics at local Walgreens drugstores."

Chadds Ford, Pa.-based I-trax, through its subsidiaries, CHD Meridian Healthcare and ProFitness Health Solutions, provides worksite health services, pharmacy and disease management services and fitness programming for more than 160 companies, including BMW, Toyota and Lowe's.

Cleveland-based Whole Health Management provides primary and urgent care, wellness programs and other occupational health services through 69 worksite centers for 27 clients, including Continental Airlines, Harrah's Entertainment and Sprint.

Walgreen shares fell 26 cents to $35.70 in morning trading. I-trax shares jumped $1.34, or 34 percent, to $5.24.