Specialty pharmacy serves patients with
chronic illnesses who require complex care
CINCINNATI, March 18,
2024 /PRNewswire/ -- The Kroger Co. (NYSE: KR)
announced that it has entered into a definitive agreement for the
sale of its specialty pharmacy business to CarelonRx, a subsidiary
of 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," said 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."
The retailer's specialty pharmacy serves patients with chronic
illness that requires complex care. Skilled clinicians and superior
therapy programs allow patients and prescribers to benefit from
education and resources, counseling, side effect management,
financial assistance, personalized care and administrative
expertise. The specialty pharmacy business supports patients facing
diseases including rheumatoid arthritis, growth hormone
deficiencies, multiple sclerosis and bleeding disorders.
Kroger Specialty Pharmacy is separate from other Kroger Family
of Pharmacies, including in-store retail pharmacies and The Little
Clinics, and therefore in-store retail pharmacies and The Little
Clinics are not included in this transaction.
This transaction is subject to customary closing conditions,
including regulatory approvals and is expected to close in the
second half of 2024; it is not expected to have an impact on
Kroger's 2024 guidance.
Advisors
RBC Capital Markets, LLC is serving as
financial advisor and Weil, Gotshal & Manges LLP and Arnold
& Porter Kaye Scholer LLP are serving as legal advisors to
Kroger.
About Kroger
At The Kroger Co., we are
dedicated to our Purpose: To Feed the Human Spirit™. We are, across
our family of companies nearly half a million associates who serve
over 11 million customers daily through a seamless digital shopping
experience and retail food stores under a variety of banner
names, serving America through food inspiration and uplift, and
creating #ZeroHungerZeroWaste communities by 2025. To learn
more about us, visit our newsroom and investor
relations site.
Forward Looking Statements
This press release contains certain statements that constitute
"forward-looking statements" within the meaning of federal
securities laws, including statements regarding the effects of the
proposed transaction. These statements are based on the assumptions
and beliefs of Kroger management in light of the information
currently available to them. Such statements are indicated by words
or phrases such as "accelerate," "anticipates," "create,"
"committed," "confident," "continue," "deliver," "driving,"
"expect," "future," "guidance," "positioned," "strategy," "target,"
"synergies," "trends," and "will." Various uncertainties and other
factors could cause actual results to differ materially from those
contained in the forward-looking statements. These include the
specific risk factors identified in "Risk Factors" in Kroger's
annual report on Form 10-K for the last fiscal year and any
subsequent filings, as well as the following: the expected timing
and likelihood of completion of the proposed transaction, including
the timing, receipt and terms and conditions of any required
governmental and regulatory clearance of the proposed transaction;
the occurrence of any event, change or other circumstances that
could give rise to the termination of the transaction agreement;
the outcome of any legal proceedings that may be instituted against
the parties and others following announcement of the transaction
agreement and proposed transaction; the inability to consummate the
proposed transaction plan due to the failure to satisfy other
conditions to complete the proposed transaction; risks that the
proposed transaction disrupts current plans and operations of
Kroger; the ability to identify and recognize the anticipated
benefits of the proposed transaction; the amount of the costs,
fees, expenses and charges related to the proposed transaction; the
ability of Kroger to maintain an investment grade credit rating;
risks related to the potential impact of general economic,
political and market factors on the companies or the proposed
transaction. The ability of Kroger to achieve the goals for the
proposed transaction may also be affected by its ability to manage
the factors identified above.
The forward-looking statements by Kroger included in this press
release speak only as of the date the statements were made. Kroger
does not assume the obligation to update the information contained
herein unless required by applicable law. Please refer to the
reports and filings of Kroger with the Securities and Exchange
Commission for a further discussion of the risks and uncertainties
that affect it and it business.
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SOURCE The Kroger Co.