By Ben Glickman


Kroger plans to sell its specialty pharmacy business to an Elevance Health subsidiary, the company said on Monday.

The grocery store chain will sell the business to CarelonRx, a pharmacy benefit manager owned by Elevance.

Terms of the transaction weren't disclosed. Kroger said the deal was expected to close in the second half of 2024 and wouldn't affect 2024 guidance.

The specialty pharmacy business is separate from the company's in-store retail pharmacies and The Little Clinics business. Kroger will keep control of those assets.

Kroger Health President Colleen Lindholz said the company concluded after a review of assets that the unit would "better meet its full potential outside of our business."

The company's specialty pharmacy segment is specifically focused on serving patients with chronic illnesses who require complex care.


Write to Ben Glickman at ben.glickman@wsj.com

(END) Dow Jones Newswires

03-18-24 1648ET