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Subsequent events
12 Months Ended
Aug. 31, 2021
Subsequent Events [Abstract]  
Subsequent events Subsequent events
On September 4, 2021 the Company executed a Membership Interest Purchase Agreement to acquire a majority equity interest in CareCentrix, Inc. (“CareCentrix”), a leading player in the post-acute and home care management sectors, for consideration of approximately $330 million, subject to a net debt adjustment. The investment will result in the Company owning approximately 55% controlling equity interest in CareCentrix. Under the terms of the Agreement, the Company has an option to acquire the remaining equity interests of CareCentrix in the future. CareCentrix’ other equity holders will also have an option to require the Company to purchase the remaining equity interests. The transaction is subject to the receipt of required regulatory clearances and approvals and other customary closing conditions. Upon closing, the Company will account for this acquisition as a business combination and consolidate CareCentrix in its financial statements.

On September 17, 2021 the Company entered into an agreement to acquire a majority equity interest in Shields Health Solutions (“Shields”), an industry leader in integrated, health system-owned specialty pharmacy care, for a cash consideration of approximately $970 million. The additional equity interest, combined with the Company's current minority equity investment, will result in the Company owning approximately 71% controlling equity interest in Shields. Under the terms of the transaction agreements, the Company has an option to acquire the remaining equity interests of Shields in the future. Shields’ other equity holders will also have an option to require the Company to purchase the remaining equity interests. The transaction is subject to the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and other customary closing conditions and is expected to close by the end of calendar 2021. At close of the transaction, the Company will account for this acquisition of the majority equity interest as a business combination and consolidate Shields in its financial statements, remeasuring its current minority equity interest at fair value with resulting gain to be recognized in Other income in the Statement of Earnings.
On October 14, 2021 the Company announced that it has agreed to make an additional $5.2 billion investment in VillageMD to advance its strategic position in the delivery of value-based primary care. The incremental investment increases the Company’s ownership stake in VillageMD to approximately 63% from approximately 30% on a fully diluted basis, and increases the number of co-located clinics from 600 primary care clinics to 1,000 by the year 2027. The investment will be comprised of $4.0 billion in cash, to be paid by the Company to VillageMD at the closing of the transaction, and a promissory note in the principal amount of $1.2 billion to VillageMD at the closing of the transaction. The Company expects to fund the cash portion of the investment through a combination of cash on hand and available credit facilities. The transaction is subject to the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and other customary closing conditions and is expected to close by the end of calendar 2021. Upon closing, the Company will account for this transaction as a business combination and consolidate VillageMD in its financial statements. The Company will remeasure its current minority equity interest and debt security at fair value with resulting gain recognized in Other income in the Statement of Earnings.