CVS Health Agrees To Acquire Omnicare For Total Enterprise Value Of $12.7 Bln

(RTTNews) - CVS Health Corp. (CVS) and Omnicare, Inc. (OCR) said they have entered into a definitive agreement for CVS Health to acquire Omnicare, a provider of pharmacy services to long term care facilities, for $98 per share in cash, for a total enterprise value of $12.7 billion, which includes approximately $2.3 billion in debt.

CVS Health expects the transaction to be about 20 cents accretive to adjusted earnings per share in 2016, its first full year, excluding integration and any one-time transaction costs. It is expected to become increasingly accretive to adjusted earnings per share in subsequent years.

Omnicare has approximately 13,000 employees at 160 locations in 47 states across the U.S. The acquisition will help CVS Health significantly expand its ability to dispense prescriptions in assisted living and long term care facilities, serving the senior patient population.

CVS Health will also expand its presence in the rapidly growing specialty pharmacy business. 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 company 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 term loans before the closing of the transaction.

The boards of directors of both companies have approved the transaction, which is expected to close near the end of 2015.