By Chelsey Dulaney
CVS Health Corp. has agreed to buy pharmacy-benefits provider
Omnicare Inc. in a deal valued at $12.7 billion, a tie-up that will
boost the pharmacy chain's services for the growing senior patient
population.
The offer for $98 a share in cash is a 3.6% premium to
Omnicare's closing price on Wednesday. The deal value includes $2.3
billion in debt.
Shares of CVS gained 1.9% in premarket trading, while Omnicare's
shares gained 1%.
CVS said the deal will significantly boost its ability to
dispense prescriptions in assisted-living and long-term care
facilities.
"The acquisition of Omnicare significantly expands our business,
providing CVS Health access into a new pharmacy dispensing
channel," said CVS Health Chief Executive Larry Merlo in a news
release
CVS expects the deal will add 20 cents to its adjusted per-share
earnings next year and become increasingly accretive after that.
CVS also said it expects to see revenue synergies.
The deal, subject to regulatory approval, is expected to close
near the end of the year.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
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