Kroger Sells Specialty Pharmacy Unit To Focus On Core Retail Business
Grocery giant Kroger has entered a definitive agreement to sell its specialty pharmacy unit to CarelonRx, a subsidiary of health insurer Elevance Health. The sale will allow Kroger to focus entirely on its core grocery and retail operations across its family of stores. The specialty pharmacy caters to patients with complex chronic conditions but represents a smaller part of Kroger’s overall business.
Kroger first acquired the specialty pharmacy in 2012 but as part of a regular review. Determined it could better meet the needs of patients under new ownership. Colleen Lindholz, President of Kroger Health, thanked associates for their commitment. But said the business will have more potential for growth outside of Kroger. The transaction is expected to close in the second half of 2024 pending approvals and will not impact Kroger’s financial guidance for the year.
A Smooth Transition
Ensuring minimal disruption for patients and associates was a key priority for Kroger in choosing a buyer. CarelonRx aims to continue specialty pharmacy services seamlessly. Kroger will collaborate to support an easy transition and maintain relationships with partners in the industry. The sale excludes Kroger’s network of in-store and clinic pharmacies, allowing it to concentrate retail operations across its family of stores.
The sale represents Kroger’s ongoing strategy reviews to optimize its portfolio. As a retail leader, Kroger’s focus remains on delivering fresh, affordable food to customers through innovative in-store experiences and seamless digital shopping. Selling non-core assets enables reinvestment in the customer value proposition and developing new services across its retail footprint. Analysts say the specialty pharmacy sale will benefit both parties in allowing them to focus on core strengths and better serve customer needs.
