Kroger Closes Sale of Specialty Pharmacy Business
Rhea-AI Summary
Kroger (NYSE: KR) has finalized the sale of its specialty pharmacy business to Elevance Health, as announced on October 4, 2024. The transaction, initially agreed upon on March 18, 2024, has been completed with efforts to minimize disruptions for patients and associates. Kroger's in-store retail pharmacies and The Little Clinics were not part of this deal.
The specialty pharmacy, which caters to patients with chronic illnesses requiring complex care, is now under Elevance Health's ownership. Notably, this sale is not expected to affect Kroger's 2024 financial guidance. RBC Capital Markets, served as the financial advisor, while Weil, Gotshal & Manges LLP and Arnold & Porter Kaye Scholer LLP provided legal counsel to Kroger for this transaction.
Positive
- Successful completion of the specialty pharmacy business sale to Elevance Health
- The sale is not expected to impact Kroger's 2024 financial guidance
- Retention of in-store retail pharmacies and The Little Clinics
Negative
- None.
News Market Reaction – KR
On the day this news was published, KR gained 0.13%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Retailer finalizes sale to Elevance Health
Kroger announced a definitive agreement with Elevance Health for the sale on March 18, 2024. In closing the transaction, the retailer and Elevance Health have worked to ensure minimal disruptions for patients and associates.
Kroger Family of Pharmacies in-store retail locations and The Little Clinics were not included in this transaction.
The specialty pharmacy, formerly owned by Kroger, serves patients with chronic illnesses that require complex care.
The sale is not expected to have an impact on 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. (NYSE: KR), we are dedicated to our Purpose: To Feed the Human Spirit™. We are, across our family of companies nearly 420,000 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. To learn more about us, visit our newsroom and investor relations site.
Forward Looking Statements
Statements in this release regarding the Company's 2024 guidance, are forward-looking statements within the meaning of federal securities laws about the future performance of the Company. These statements are based on management's assumptions and beliefs in light of the information currently available to it. 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 our annual report on Form 10-K for our last fiscal year and any subsequent filings. Kroger assumes no obligation to update the information contained herein unless required by applicable law. Please refer to Kroger's reports and filings with the Securities and Exchange Commission for a further discussion of these risks and uncertainties.
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SOURCE The Kroger Co.
FAQ
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