Estimated read time: Less than a minute
NEW YORK (AP) — CVS will buy the pharmacy benefits provider Omnicare in a deal valued at about $12.7 billion, putting it in a better position to get its prescriptions to the growing U.S. population living in senior-care facilities.
CVS Health Corp., formerly called CVS Caremark, runs one of the biggest pharmacy benefits management operations along with more than 7,800 drugstores. Omnicare has about 13,000 employees at 160 locations in 47 states.
The Woonsocket, Rhode Island, company will pay $98 per share for Omnicare, a 6. 1 percent premium to its closing price Wednesday. The deal also includes about $2.3 billion in debt.
Sales at CVS' pharmacy benefits management business jumped 18 percent to $24 billion during the first quarter, while specialty drug revenue rose 46 percent.
The deal is expected to close near the end of 2015 and CVS expects the acquisition to add about 20 cents to its adjusted earnings per share in 2016.
Omnicare Inc. is based in Cincinnati.