CVS Caremark To Buy Apria Healthcare's Coram Infusion Business For $2.1 Bln

(RTTNews) - Drugstore chain CVS Caremark Corp. (CVS) has agreed to acquire Coram LLC, the specialty infusion services and enteral nutrition business unit of Apria Healthcare Group Inc. (AHG) for about $2.1 billion.

CVS Caremark Pharmacy Services' President, Jon Roberts, said, "Bringing together CVS Caremark's unique range of specialty pharmacy services with Coram's infusion capabilities will expand our competitive offerings in the specialty arena. Infusion will be a valuable component of our broad specialty pharmacy offering going forward. Our comprehensive services will enable us to streamline care management for patients as well as their physicians, leading to better health outcomes while avoiding unnecessary costs."

Coram is likely to generate nearly $1.4 billion revenues in the first year following the deal closure. Including one-time transaction and integration costs, the transaction is anticipated to have an immaterial impact on CVS Caremark's 2014 overall results. Also, the transaction may add $0.03 - $0.05 cents to the company's adjusted earnings per share in 2015, the first full year upon the completion of the deal. The purchase may close by the end of first quarter 2014.

Barclays served as the firm's financial advisor on the transaction, whilst Sullivan and Cromwell LLP served as legal advisor and Dechert LLP served as legal advisor from an anti-trust perspective.