Kroger said it is planning to sell its speciality pharmacy business to pharmacy benefit manager CarelonRx, a subsidiary of Elevance Health, the company said Monday.
The supermarket chain said it expects to close the sale of its speciality pharmacy business during the second half of this year.
The sale does not include its in-store retail pharmacies and its The Little Clinics, the company said, adding that the transaction will not have an impact on the company’s 2024 fiscal outlook.
Moreover, the Cincinnati, Ohio-based Kroger said the sale is not tied to its planned merger to acquire grocery-store chain Albertsons Cos. Inc for $24.6 billion, which is under federal scrutiny.
In February, the supermarket chain was sued by the Federal Trade Commission (FTC) after talks of the deal — considered to be one of the biggest merger proposals in U.S. history — would lead to grocery price hikes for consumers and reduced competition. The grocery chains have suggested selling hundreds of stores in a bid to increase the proposal’s appeal.
Colleen Lindholz, president of Kroger Health, said that after the company reviewed its assets, it was evident that its specialty pharmacy business would reach “its full potential outside of our business.”
Kroger’s speciality pharmacy primarily serves patients with chronic illnesses that require complex care, including patients facing certain diseases such as growth hormone deficiencies and bleeding disorders, the company said.
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