Chicago private equity firm Madison Dearborn Partners is buying a majority interest in Walgreens Infusion Services, a subsidiary of Walgreens Boots Alliance Inc. (Nasdaq: WBA).

Walgreens Infusion Services provides home and alternate-treatment-site infusion services, including intervenous antibiotics, bleeding treatments, immunoglobulin therapy and nutrition treatment. The company has 89 infusion pharmacies and 110 alternate treatment sites in 40 states. Terms of the deal, which was announced late Jan. 20, were not disclosed.

When the deal closes, Walgreens Infusion Services will become a new, privately-owned company. Walgreens Boots will own a minority interest. Walgreens paid about $15.3 billionfor the part of Alliance Boots that it didn't already own in late 2014. Mergers & Acquisitions is expected more businesses to shed non-core assets in 2015. 

Madison Dearborn's recent transactions include the sale of tire-pressure monitoring company Schrader International to Sensata Technologies Holding NV (NYSE: ST) for about $1 billion in August, and the sale of technology company Fieldglass to SAP AG (NYSE: SAP) in March. 

The firm has raised more than $18 billion in capital and invests in the business, government services, consumer, financial services, health care, and technology, media and telecommunications industries.

Bank of America Merrill Lynch was Walgreen Co.'s financial adviser, while Sidley Austin LLP provided legal advice and Weil Gotshal & Manges provided antitrust counsel. Barclays, Deutsche Bank and Goldman Sachs advised Madison Dearborn on the transaction, while Ropes & Gray acted as regulatory counsel. Kirkland & Ellis LLP acted as Madison Dearborn's legal adviser. BofA Merrill Lynch will lead the first-lien financing and Goldman Sachs Mezzanine Fund is providing second lien notes.

Walgreens isn't the only one building up an infusion network. Earlier in January, Harvest Partners-backed AxelaCare Health Solutions acquired Ambient Healthcare, which provides intravenous therapies and nursing services. Before that, in October, AxelaCare bought Advanced Care to expand its offerings on the East Coast. 


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