Walgreen sells Infusion Services to Madison Dearborn

In its first major move since its merger with Boots Alliance, Deerfield-based drugstore chain Walgreen Co. announced it will sell a majority interest in its Infusion Services division to capital firm Madison Dearborn Partners.

Terms of the sale were not announced. Under the agreement, Walgreens Infusion Services will become an independent, privately-held company, with Chicago-based Madison Dearborn owning a majority interest and Walgreens having a minority interest, as well as representation on the company's board of directors.

"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, which will have a dedicated focus on this $14 billion and growing U.S. market," said Mike Ellis, vice president of Walgreens specialty pharmacy and infusion services.

Walgreens Infusion Services is a provider of home and alternate treatment site infusion services, which treats patients who are managing a broad range of acute and chronic conditions, according the company. The company is an industry leader and includes 89 infusion pharmacies and 110 alternate treatment sites in 40 states and employs about 4,700 employees.

Paul Mastrapa, divisional vice president of Walgreens Infusion Services, will serve as the new company's CEO.

"The new company, which will have an industry-leading management team supported by MDP and Walgreens, will be positioned to provide even greater value to patients, local health systems, health plans and pharmaceutical manufacturers," Mastrapa said.

Tim Sullivan, managing director of Madison Dearborn, said the firm plans to invest in additional resources and new technology "to enhance the company's pre-eminent capabilities as an alternate site provider of critical health care services."

"MDP looks forward to our business relationship with Walgreens, and we are confident the new company is well positioned to continue to grow in the alternate-site infusion services industry," said Sullivan.

The sale is expected to close in the second quarter of 2015.

Walgreens, the nation's largest drugstore chain, completed its $16 billion acquisition with European health and beauty chain Boots Alliance late last year. The sale of Infusion Services is in line with the new company's focus on ramping up its core retail and specialty offerings.