CVS Health Corp. said Thursday it is acquiring Omnicare Inc. for $98 per share in cash, for a total enterprise value of approximately $12.7 billion. That includes about $2.3 billion in debt. Cincinnati-headquartered Omnicare, which has about 13,000 employees at 160 locations in 47 states, provides pharmacy services to long-term care facilities. Woonsocket, R.I.-based CVS said the deal will expand its ability to dispense prescriptions in assisted living and long-term care facilities, serving the senior patient population. The transaction will also enable CVS to broaden its presence in the specialty pharmacy business. CVS said it has secured $13 billion in fully committed unsecured bridge financing from Barclays and expects to put in place permanent financing in the form of senior notes and/or term loans prior to the deal’s close. The transaction is expected to close near the end of the year. In a statement, CVS Health president and CEO Larry Merlo said the acquisition ‘significantly expands our business, providing CVS Health access into a new pharmacy dispensing channel.’ Merlo added that the deal ‘creates new opportunities for us to extend our high-quality, innovative pharmacy programs to a broader population of seniors and chronic care patients as they transition across the care continuum.’ CVS expects the purchase to be approximately 20 cents accretive to adjusted earnings per share in 2016. CVS shares closed at $103.69 on Thursday, up 2.39%. Shares of Omnicare closed at $96.26, up 1.72%.
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