VillageMD and Walgreens Boots Alliance, Inc. (WBA) have announced that Walgreens will be the first national pharmacy chain to offer full-service doctor offices co-located at its stores at a large scale, following a trial begun last year. This expanded partnership will open 500 to 700 “Village Medical at Walgreens” physician-led primary care clinics in more than 30 US markets in the next five years, with the intent to build hundreds more thereafter. Under the terms of the new agreement, WBA will invest US$1 billion in growth equity and convertible debt in VillageMD over the next three years, including a US$250 million equity investment to be completed July 8, 2020.
Latham & Watkins LLP represents VillageMD in the financing transaction with a corporate deal team led by New York partner Nathan Ajiashvili and Boston partner Daniel Hoffman, with Boston associates John Miller, Elizabeth Mims Slawsby, Stephen Levy and Anna Rainsford and in the commercial partnership with a deal team led by Boston partner Sarah Gagan, with Los Angeles associate Jia Jia Huang, New York counsel Shira Bressler on real estate matters, and Washington, D.C. partner Stuart Kurlander and Washington, D.C. counsel Nicole Liffrig Molife on healthcare and regulatory matters.
Advice was also provided on tax matters by New York partner Jocelyn Noll, with New York associate Shruti Hazra; and on benefits and compensation matters by Washington, D.C. partner David Della Rocca, with Washington, D.C. associate Nikhil Kumar. Wendy Rubas also served as VillageMD‘s in-house general counsel.
Sidley Austin LLP represented Walgreens Boots Alliance, Inc. in its agreement to invest $1 billion in equity and convertible debt in VillageMD, which will primarily be used to fund the opening of full-service doctor offices co-located at Walgreens stores at a large scale.
Names of the Sidley deal team members:
Chris Abbinante/Partner/Private equity/Chicago (Lead)
Joe Michaels/Associate/M&A/Chicago
Leigh Rorick/Associate/M&A/Chicago
Kelly Dybala/Partner/Global Finance/Dallas
Additional Team members:
Scott Pollock/Partner/Tax/Chicago
Donielle McCutcheon/Partner/Healthcare/Chicago
Melissa Wu/Associate/Healthcare/Chicago
Colleen Theresa Brown/Partner/Privacy and Cybersecurity/Washington D.C.
Gabby Whitehall/Associate/Privacy and Cybersecurity/Washington D.C.
