CVS Health to acquire Omnicare in expansion move

US pharmacy benefits manager CVS Health (NYSE: CVS) will acquire pharmaceutical services company Omnicare (NYSE:OCR) for a total enterprise value of approximately $12.7 billion, or $98.00 per share in cash, which includes around $2.3 billion in debt.

CVS said the acquisition will 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 CVS Health to continue to provide innovative and cost-effective solutions to patients and payors. It said it expects the transaction to be about 20 cents accretive to adjusted earnings per share (EPS) in 2016, its first full year, excluding integration and any one-time transaction costs. It is expected to become increasingly accretive to Adjusted EPS in subsequent years.

Transaction approved