CVS to buy Omnicare for $12.7 Billion
The U.S. based CVS Health Corp. has agreed to purchase elderly health provider Omnicare Inc. within a deal valued at $12.7 Billion. The will enable CVS to boost it's pharmacy chains services to cater for the growing elderly patient population in the U.S.
The offer is for $98 per share and is a 3.6% premium to Omniare's closing price OCR which was 1.72% on Wednesday. the value of the deal include $2.3 billion of debt.
CVS said the deal will significantly boost its ability to dispense prescriptions in assisted-living and long-term care facilities, whilst expecting 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.