Chicago-based private equity firm Water Street Healthcare Partners LLC announced plans Thursday to invest in both companies and combine them to create an even bigger work-site health care business. The new company, which has not yet been named, will have about 500 work sites in 44 states, said Water Street spokeswoman Kelly Zitlow.
CHS Health Services, formerly of Reston, merged with its technology partner W-Squared Inc. in Brentwood, Tenn., last year. A CHS entity called Comprehensive Health Services Inc. still has a location in Reston and will not be part of this transaction. Take Care Employer Solutions, a subsidiary of Walgreens, is based in Franklin, Tenn.
The new company will be led by CHS Health Services’ Stuart Clark. “Together, we will have the experience and resources to create innovative strategies that will improve patient engagement and positively impact health outcomes,” Clark said in a statement.
CHS Chief Financial Officer Shannon Farrington will serve as the new company’s CFO. The new chief operating officer will be Trent Riley, who is divisional vice president of Take Care Employer Solutions Group.
Water Street will own a majority stake, while Walgreen Co. and CHS will both maintain minority interest in that new company.
Walgreens will continue to operate locations of its Healthcare Clinic retail walk-in clinics, which used to run under the name Take Care Clinic.
The merger is still subject to regulatory approval. CHS and Take Care will continue to operate as separate companies in the meantime.
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Tina Reed covers health care.