Grocer Kroger said on Monday it had entered a definitive agreement for the sale of its specialty pharmacy business to CarelonRx, a unit of US health insurer Elevance Health.

The financial terms of the deal were not disclosed.

The retailer’s specialty pharmacy business serves patients with chronic illnesses that require complex care.

Kroger Specialty Pharmacy is separate from other Kroger Family of Pharmacies, including in-store retail pharmacies and The Little Clinics, which are not included in the deal.

The deal, subject to customary closing conditions and regulatory approvals, is expected to close in the second half of 2024. It is not expected to impact Kroger’s 2024 fiscal forecasts.

• Reporting by Annett Mary Manoj in Bengaluru; Editing by Devika Syamnath, of Reuters.