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.