Walgreens, which is already the nation's biggest drugstore chain, announced Thursday it has agreed to become the majority owner of VillageMD and is preparing to open hundreds of doctor offices under the VillageMD brand across the country.
Walgreens Boots Alliance Inc., the owner of Walgreens which operates about 9,000 drugstores nationwide including 13 in Hamilton County, said it will invest $5.2 billion in VillageMD. That will increase Walgreens' ownership stake from 30% to 63%.
Walgreens said it expects the deal to close by the end of this year, pending regulatory approval.
The investment comes as Walgreens continues to turn its stores into health-care destinations that not only fill prescriptions but also have doctors who can write them and provide other types of care. VillageMD currently operates in 15 U.S. markets, including Atlanta, and has set a goal of having at least 600 primary-care clinics in more than 30 U.S. markets by 2025 and 1,000 clinics by 2027.
In an interview with CNBC, Walgreens CEO Roz Brewer said the VillageMD clinics will have pharmacists and physicians who work together.
"Your physician recommendations are being shared directly with the pharmacist," Brewer said. "I think that's a game changer when you think about what we're able to do."
Most of the clinics will be about 3,300 square feet, Brewer said.
Walgreens on Thursday reported fiscal fourth-quarter net income of $627 million, or 72 cents per share. Earnings, adjusted for one-time gains and costs, were $1.17 per share.
The results exceeded Wall Street expectations. The average estimate of six analysts surveyed by Zacks Investment Research was for earnings of $1.03 per share.
The largest U.S. drugstore chain posted revenue of $34.26 billion in the period, also beating Street forecasts.