Conservative · Stocks to Consider and Updates

CVS Health to Acquire Omnicare

  CVS   Woonsocket, Rhode Island-based CVS Health Corporation (NYSE: CVS – $104.38) and Omnicare, Inc. announced that they have entered into a definitive agreement for CVS Health to acquire Omnicare, the leading provider of pharmacy services to long-term care facilities, for approximately $12.7 billion, which includes about $2.3 billion in Omnicare  debt. Omnicare operates pharmacies at 160 nursing homes and assisted living locations in 47 states and will add about $6.7 billion to CVS’ top line. With the acquisition of Omnicare, CVS Health will significantly expand its ability to dispense prescriptions in long-term care facilities, serving the senior patient population. CVS Health will also expand its presence in the rapidly growing specialty pharmacy business, which includes last year’s acquisition of Coram, a specialty infusion service provider. Omnicare’s complementary specialty pharmacy platform and clinical expertise will augment CVS Health’s capabilities and enable the company to continue to provide innovative and cost-effective solutions to patients and payors. The deal is awaiting shareholder and regulatory approval as the boards of both companies have already signed off. Barring any setbacks, the transaction is expected to close near the end of 2015. Following the news CVS Health shares climbed over 3% to close in on its all-time high of $105.46 set back in March. The stock continues to provide good 3- to 5-year total return potential when you factor in the income component, yielding 1.4%.

CVS

2 thoughts on “CVS Health to Acquire Omnicare

  1. Hola! I’ve been following your web site for a long time now
    and finally got the bravery to go ahead and give you a
    shout out from Lubbock Texas! Just wanted to
    tell you keep up the good work!

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s