MAY, 4, 2014 – Procter & Gamble has agreed to sell its concierge physician business MDVIP to a Boston investment firm for an undisclosed sum.
Boca Raton, Fla.-based MDVIP offers higher-income clients access to 700 doctors in 42 states. Patients are promised closer personal attention in exchange for annual fees starting at $1,500.
P&G invested in MDVIP in 2006 and bought it in 2010. At the time, MDVIP was considered a leader in delivering customized medical care to counter a trend toward large, cookie-cutter practices.
P&G said the sale of MDVIP is “another step in its strategy to focus the company’s portfolio on core businesses where P&G can create the most value for consumers and shareowners.” The consumer products giant has shed large pieces of its health-care business, most notably, its prescription drug unit, for $3.1 billion in 2009.
Summit said the sale will close “shortly.” Under the deal, P&G’s Dan Hecht, who joined MDVIP in 2010, will transfer to the new company as chief executive.
“Amid all the complexity and uncertainty surrounding health care today, MDVIP is able to give patients what they want – a close relationship with a doctor who has the time to put them first and help them enjoy a healthier, longer life,” Hecht said.
The divestiture is only the latest for P&G, which last month also announced a deal to sell off its pet care business to Mars Inc. for $2.9 billion. In February, P&G announced it is selling off its remaining European bleach business for an undisclosed sum.
Since returning as CEO last year, A.G. Lafley has said P&G will exit ventures that won’t help it grow. He has emphasized growing P&G’s largest core businesses like beauty, baby care, fabric care and shaving.
Lafley has used divestitures to boost P&G’s fortunes before. During his previous 2000 to 2009 tenure, he oversaw the dismantling of most of P&G’s food business as he sold or spun off brands like Crisco shortening, Jif peanut butter and Folgers coffee.