National

Axios Closer

Drugstores are eager to offer primary care as they aim to bundle a widening scope of their consumers' health care needs.

Why it matters: Bundling individual services under one roof and one brand would deepen stores' ties with customers and patients — providing them a one-stop shop for doctor's visits, insurance and pharmaceuticals.

Driving the news: CVS CEO Karen Lynch told analysts on an earnings call this morning that the company is determined to acquire or take a stake in a primary care provider by the end of the year.

Amazon just beat out CVS to acquire One Medical, but Lynch and her team say their existing physical footprint is already a huge advantage. 

“Let me remind you that we are the largest provider of retail health services in the nation,” Lynch said.

CFO Shawn Guertin added: "Our vision is something new and differentiated ... And thus, there is no one-and-done asset there."

Context: With insurer Aetna and pharmacy benefits manager Caremark, CVS already has access to a significant swath of the healthcare market.

Currently, eligible Aetna and CVS Caremark customers can receive some in-person and virtual primary care and mental health services. 

Zoom out: Retail pharmacies are in prime position to take advantage of new consumer interest in health and wellness borne through the pandemic. 

Walgreens last year increased its investment in VillageMD to open clinics within its stores. 

Rite Aid has partnered with primary care company Homeward to offer primary care services in hundreds of Rite Aid locations in rural locations.

What to watch: Jeff Gamble, the founder of concierge primary care network Rezilient Health, theorized that CVS might pursue Teladoc, which is already Aetna's exclusive telehealth provider. 

Drugstores rush to bundle primary health care

Bundling individual services under one roof would deepen stores' ties with customers and patients, providing a one-stop-shop for for doctor's visits, insurance and pharmaceuticals.

CVS Health

Drugstores are eager to offer primary care as they aim to bundle a widening scope of their consumers&#x27; health care needs.Why it matters: Bundling individual services under one roof and one brand would deepen stores&#x27; ties with customers and patients — providing them a one-stop shop for doctor&#x27;s visits, insurance and pharmaceuticals.

After a record economic expansion, the coronavirus pandemic sent the U.S. economy into a recession as unemployment soared to staggering heights. The country now faces urgent questions about how much stimulus is needed for reeling consumers and businesses, and what a recovery might look like.

Economy & Business

Retail Deals

Italian luxury fashion house Prada is weighing a second listing of at least $1 billion in Milan, in a bid to diversify its investor base, Bloomberg reported.

Why it matters: Prada joins other big luxury names — looking at you Tom Ford and Giorgio Armani — testing the market's seemingly robust appetite for luxury retail.

What's happening: Prada is working with Goldman Sachs on early preparations for the potential offering, Bloomberg says.

A listing would likely occur next year, though the timing and exact size haven't been determined.

The fashion house wants to shift its investor base away from its Hong Kong concentration, per the report.

Catch up fast: In 2011, Prada raised $2.1 billion by listing a 20% stake in Hong Kong.

At that time, many luxury brands were flocking to the Asian market to serve their largest customer base.

In July, Prada chairman Paolo Zannoni acknowledged that the company was considering a Milan listing, but that it was not a priority.

The remaining 80% of the company is owned by a vehicle backed by co-CEO Miuccia Prada and her husband, Patrizio Bertelli.

Of note: That 80% is not likely to get cut in the event of a deal, Bloomberg reports.

The bottom line: With a market capitalization of $14 billion, it's logical that Prada would look to widen its investor base and let more U.S. and European players into the sandbox.

Prada seeking $1 billion in Milan listing

Prada joins Tom Ford and Giorgio Armani in the luxury deal market.

Photo by Mairo Cinquetti/NurPhoto via Getty Images

Retail

Italian luxury fashion house Prada is weighing a second listing of at least $1 billion in Milan, in a bid to diversify its investor base, <a class="gtmContentClick" data-vars-link-text="Bloomberg reported." data-vars-click-url="https://link.axios.com/click/28710922.1181/aHR0cHM6Ly93d3cuYmxvb21iZXJnLmNvbS9uZXdzL2FydGljbGVzLzIwMjItMDgtMTIvcHJhZGEtc2FpZC10by1zZWVrLWF0LWxlYXN0LTEtYmlsbGlvbi1pbi1uZXctbWlsYW4tbGlzdGluZz9zcm5kPWRlYWxzJnNyZWY9eUxDaXhLUFImdXRtX3NvdXJjZT1uZXdzbGV0dGVyJnV0bV9tZWRpdW09ZW1haWwmdXRtX2NhbXBhaWduPXByb19kZWFsc19yZXRhaWxfc3VicyZzdHJlYW09dG9w/6241b97a2bec4503a570c049B4495b398" data-vars-content-id="aa688850-a8fa-42c7-8b5a-0a9fb50fa82e" data-vars-headline="Prada seeking $1 billion in Milan listing" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://link.axios.com/click/28710922.1181/aHR0cHM6Ly93d3cuYmxvb21iZXJnLmNvbS9uZXdzL2FydGljbGVzLzIwMjItMDgtMTIvcHJhZGEtc2FpZC10by1zZWVrLWF0LWxlYXN0LTEtYmlsbGlvbi1pbi1uZXctbWlsYW4tbGlzdGluZz9zcm5kPWRlYWxzJnNyZWY9eUxDaXhLUFImdXRtX3NvdXJjZT1uZXdzbGV0dGVyJnV0bV9tZWRpdW09ZW1haWwmdXRtX2NhbXBhaWduPXByb19kZWFsc19yZXRhaWxfc3VicyZzdHJlYW09dG9w/6241b97a2bec4503a570c049B4495b398" target="_blank">Bloomberg reported.</a>Why it matters: Prada joins other big luxury names — looking at you <a class="gtmContentClick" data-vars-link-text="Tom Ford " data-vars-click-url="https://link.axios.com/click/28710922.1181/aHR0cHM6Ly93d3cuYXhpb3MuY29tL3Byby9yZXRhaWwtZGVhbHMvMjAyMi8wOC8wMi9lc3RlZS1sYXVkZXItY2lyY2xlcy10b20tZm9yZD91dG1fc291cmNlPW5ld3NsZXR0ZXImdXRtX21lZGl1bT1lbWFpbCZ1dG1fY2FtcGFpZ249cHJvX2RlYWxzX3JldGFpbF9zdWJzJnN0cmVhbT10b3A/6241b97a2bec4503a570c049C56248c82" data-vars-content-id="aa688850-a8fa-42c7-8b5a-0a9fb50fa82e" data-vars-headline="Prada seeking $1 billion in Milan listing" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://link.axios.com/click/28710922.1181/aHR0cHM6Ly93d3cuYXhpb3MuY29tL3Byby9yZXRhaWwtZGVhbHMvMjAyMi8wOC8wMi9lc3RlZS1sYXVkZXItY2lyY2xlcy10b20tZm9yZD91dG1fc291cmNlPW5ld3NsZXR0ZXImdXRtX21lZGl1bT1lbWFpbCZ1dG1fY2FtcGFpZ249cHJvX2RlYWxzX3JldGFpbF9zdWJzJnN0cmVhbT10b3A/6241b97a2bec4503a570c049C56248c82" target="_blank">Tom Ford </a>and <a class="gtmContentClick" data-vars-link-text="Giorgio Armani" data-vars-click-url="https://link.axios.com/click/28710922.1181/aHR0cHM6Ly93d3cuYXhpb3MuY29tL3Byby9yZXRhaWwtZGVhbHMvMjAyMi8wNy8yNy92YWxlbnRpbm8taW4tdGFsa3MtdG8tYWNxdWlyZS1hcm1hbmk_dXRtX3NvdXJjZT1uZXdzbGV0dGVyJnV0bV9tZWRpdW09ZW1haWwmdXRtX2NhbXBhaWduPXByb19kZWFsc19yZXRhaWxfc3VicyZzdHJlYW09dG9w/6241b97a2bec4503a570c049B0d1d2112" data-vars-content-id="aa688850-a8fa-42c7-8b5a-0a9fb50fa82e" data-vars-headline="Prada seeking $1 billion in Milan listing" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://link.axios.com/click/28710922.1181/aHR0cHM6Ly93d3cuYXhpb3MuY29tL3Byby9yZXRhaWwtZGVhbHMvMjAyMi8wNy8yNy92YWxlbnRpbm8taW4tdGFsa3MtdG8tYWNxdWlyZS1hcm1hbmk_dXRtX3NvdXJjZT1uZXdzbGV0dGVyJnV0bV9tZWRpdW09ZW1haWwmdXRtX2NhbXBhaWduPXByb19kZWFsc19yZXRhaWxfc3VicyZzdHJlYW09dG9w/6241b97a2bec4503a570c049B0d1d2112" target="_blank">Giorgio Armani</a> — testing the market&#x27;s seemingly robust appetite for luxury retail.

Westrock Coffee closed its SPAC deal with Riverview Acquisition, raising about $300 million in equity, and began trading on Nasdaq today, the company announced. 

Why it matters: Armed to the teeth with cash, Westrock — which provides coffee and tea pods, brewing equipment and dispensers — could prove a formidable consolidator in the coffee and tea packaging space.

Deal details: In addition to the equity, Westrock secured a $175 million senior secured first lien term loan facility and a $175 million senior secured first lien revolving credit facility.

Proceeds will pay existing debts as well as finance "organic and strategic growth initiatives," the company said. 

The company will trade on Nasdaq under WEST.

How it works: Westrock competes with Keurig and Nespresso, providing coffee and tea products for offices, convenience stores, grocery stores, universities, coffeehouses, and restaurants. 

The company exports its products through its subsidiary company.

The big picture: Though public markets are still choppy, demand for coffee products is strong. Nestle's Q2 results saw sales of coffee, including Nescafe and Starbucks brands, increase. In 2021, coffee was Nestle's largest contributor to organic growth.

Westrock Coffee starts trading on Nasdaq

The company began trading on Nasdaq Monday morning.

Illustration of a coffee cup with steam in the shape of a dollar sign.

Westrock Coffee closed its SPAC deal with Riverview Acquisition, raising about $300 million in equity, and began trading on Nasdaq today, <a class="gtmContentClick" data-vars-link-text="the company announced" data-vars-click-url="https://link.axios.com/click/28882252.826/aHR0cHM6Ly93d3cuYnVzaW5lc3N3aXJlLmNvbS9uZXdzL2hvbWUvMjAyMjA4MjkwMDUxMDUvZW4vV2VzdHJvY2stQ29mZmVlLUNvbXBhbnktQW5ub3VuY2VzLUNsb3Npbmctb2YtQnVzaW5lc3MtQ29tYmluYXRpb24td2l0aC1SaXZlcnZpZXctQWNxdWlzaXRpb24tQ29ycC4tYW5kLUVudHJ5LUludG8tYS1OZXctQ3JlZGl0LUFncmVlbWVudD91dG1fc291cmNlPW5ld3NsZXR0ZXImdXRtX21lZGl1bT1lbWFpbCZ1dG1fY2FtcGFpZ249cHJvX2RlYWxzX3JldGFpbF9zdWJzJnN0cmVhbT10b3A/61b8a591584bc520355bcf51Bfdf488b2" data-vars-content-id="dd6d8718-9067-47c4-a4de-73fc59368433" data-vars-headline="Westrock Coffee starts trading on Nasdaq" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://link.axios.com/click/28882252.826/aHR0cHM6Ly93d3cuYnVzaW5lc3N3aXJlLmNvbS9uZXdzL2hvbWUvMjAyMjA4MjkwMDUxMDUvZW4vV2VzdHJvY2stQ29mZmVlLUNvbXBhbnktQW5ub3VuY2VzLUNsb3Npbmctb2YtQnVzaW5lc3MtQ29tYmluYXRpb24td2l0aC1SaXZlcnZpZXctQWNxdWlzaXRpb24tQ29ycC4tYW5kLUVudHJ5LUludG8tYS1OZXctQ3JlZGl0LUFncmVlbWVudD91dG1fc291cmNlPW5ld3NsZXR0ZXImdXRtX21lZGl1bT1lbWFpbCZ1dG1fY2FtcGFpZ249cHJvX2RlYWxzX3JldGFpbF9zdWJzJnN0cmVhbT10b3A/61b8a591584bc520355bcf51Bfdf488b2" target="_blank">the company announced</a>. Why it matters: Armed to the teeth with cash, Westrock — which provides coffee and tea pods, brewing equipment and dispensers — could prove a formidable consolidator in the coffee and tea packaging space.

TreeHouse Foods announced plans to sell a "significant portion" of its meal preparation business to Italy-based Investindustrial for $950 million.

Why it matters: The transaction is a milestone in TreeHouse Foods' quest to rebuild its portfolio after a strategic review that began in November 2021 led TreeHouse to focus on its snacking and beverages business.

By the numbers: The meal prep business, which makes sauces and pasta for store-owned brands, projects about $1.6 billion in net sales and $70 million in adjusted core earnings for 2022, TreeHouse said.

The deal values the meal prep business at 13.6x 2022 adjusted EBITDA.

Catch up fast: TreeHouse has been in overhaul mode for the last several years. The company acquired Conagra's private label business for $2.7 billion in 2016, and the company's sales peaked that year at over $6.1 billion. But then declined for the next three years.

While sales rebounded in 2020, activist investor Jana Partners asked TreeHouse to launch a strategic review late last year (which included looking at a sale of the company) and for three Jana-occupied board seats.

TreeHouse ruled out a full sale of the company, announcing in March that it was assessing options for its meal prep business.

What we're watching: TreeHouse now has time to focus on its snacks and beverages unit, which it could bolster through acquisitions.

On its Q2 earnings call this week, TreeHouse CEO Steve Oakland told analysts there's "some small stuff out there" with regard to M&A for snacks and beverages.

"Quite frankly, with the leverage loan market so tight, I think most of the sponsor-led stuff is on pause," he said. "But we think there'll be stuff coming forward here as it starts to open up and normalize, right? Yes."

TreeHouse offloads meal prep biz for $950M

The sale furthers TreeHouse's focus on snacks and drinks.

Illustration of a bowl of salad made out of money

TreeHouse Foods <a class="gtmContentClick" data-vars-link-text="announced plans " data-vars-click-url="https://link.axios.com/click/28694840.1075/aHR0cHM6Ly93d3cucHJuZXdzd2lyZS5jb20vbmV3cy1yZWxlYXNlcy90cmVlaG91c2UtZm9vZHMtYW5ub3VuY2VzLXNhbGUtb2Ytc2lnbmlmaWNhbnQtcG9ydGlvbi1vZi1pdHMtbWVhbC1wcmVwYXJhdGlvbi1idXNpbmVzcy10by1pbnZlc3RpbmR1c3RyaWFsLWZvci05NTAtbWlsbGlvbi0zMDE2MDQwNzEuaHRtbD91dG1fc291cmNlPW5ld3NsZXR0ZXImdXRtX21lZGl1bT1lbWFpbCZ1dG1fY2FtcGFpZ249cHJvX2RlYWxzX3JldGFpbF9zdWJzJnN0cmVhbT10b3A/6241b97a2bec4503a570c049B54be1f7f" data-vars-content-id="efbbe34c-568e-4a74-af73-ea9182fbb8d3" data-vars-headline="TreeHouse offloads meal prep biz for $950M" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://link.axios.com/click/28694840.1075/aHR0cHM6Ly93d3cucHJuZXdzd2lyZS5jb20vbmV3cy1yZWxlYXNlcy90cmVlaG91c2UtZm9vZHMtYW5ub3VuY2VzLXNhbGUtb2Ytc2lnbmlmaWNhbnQtcG9ydGlvbi1vZi1pdHMtbWVhbC1wcmVwYXJhdGlvbi1idXNpbmVzcy10by1pbnZlc3RpbmR1c3RyaWFsLWZvci05NTAtbWlsbGlvbi0zMDE2MDQwNzEuaHRtbD91dG1fc291cmNlPW5ld3NsZXR0ZXImdXRtX21lZGl1bT1lbWFpbCZ1dG1fY2FtcGFpZ249cHJvX2RlYWxzX3JldGFpbF9zdWJzJnN0cmVhbT10b3A/6241b97a2bec4503a570c049B54be1f7f" target="_blank">announced plans </a>to sell a &quot;significant portion&quot; of its meal preparation business to Italy-based Investindustrial for $950 million.Why it matters: The transaction is a milestone in TreeHouse Foods&#x27; quest to rebuild its portfolio after a strategic review that began in November 2021 led TreeHouse to focus on its snacking and beverages business.

Health Tech Deals

CVS, which lost to Amazon on a bid for primary care player One Medical, said in an earnings call today it plans to acquire or take a stake in a primary care company by year-end.

Why it matters: Amid competition from Amazon, which paid nearly $4 billion for ONEM, and pharmacy peers like Walgreens, CVS is determined to get its piece of the primary care pie. 

What they're saying: CEO Karen Lynch said CVS is looking for a provider with a strong management and technology background, with capacity for rapid growth. 

State of play: With insurer Aetna and pharmacy benefits manager Caremark, CVS has access to a significant swath of the healthcare market already.

Currently, patients can receive vaccines and urgent care at CVS MinuteClinics, but the company has been floating the idea of buying doctor practices since late last year. 

Since Amazon's surprise ONEM takeover, other public primary care players have come into focus as potential targets, including CareMax, Cano, Agilon, ApolloMed and Oak Street Health. 

Jeff Gamble, the founder of concierge primary care network Rezilient Health, theorized that CVS might pursue Teladoc, which is already Aetna's exclusive telehealth provider. 

The bottom line: Though CVS might have gotten bested on ONEM, it's clear the health giant is intent on pursuing a transformational primary care move. 

CVS shares were up about 5% early this morning. 

CVS still eyeing primary care

Amid competition CVS is determined to get its piece of the primary care pie.

Health tech deals

CVS, which lost to Amazon on a bid for primary care player One Medical, said in an earnings call today it plans to acquire or take a stake in a primary care company by year-end.Why it matters: Amid competition from Amazon, which paid nearly $4 billion for ONEM, and pharmacy peers like Walgreens, CVS is determined to get its piece of the primary care pie.

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Stories

Westrock Coffee starts trading on Nasdaq

Prada seeking $1 billion in Milan listing

TreeHouse offloads meal prep biz for $950M

Drugstores rush to bundle primary health care

CVS still eyeing primary care