M&A Round Up: Caremark,CVS Deal Lagging, Private Equity Eye's Realogy

Includes: BMET, CMX, CVS, ESRX
by: Tom Taulli
How About $26 Billion? With the Caremark (CMX)-CVS(NYSE:CVS) deal lagging, Express Scripts (NASDAQ:ESRX) took advantage of the situation, as it has made a $26 billion bid (cash and stock) for Caremark.

Interestingly enough, Express Scripts is a smaller company than Caremark. But, hey, with financing sloshing around, even smaller players can be in the big leagues.

However, all this activity may be for naught. Consolidation of the pharmacy-benefit management market could get the attention of the antitrust authorities, after all.

Private Equity's Land Grab: Realogy (NYSE:H) is the largest player in residential brokerage, with brands like Century 21 and Coldwell Banker. Now, it's new owner may be a private equity firm. The deal calls for Apollo Management to shell-out $6.6 billion for the company.

The deal has a "go shop" provision. That is, Realogy can solicit other bids. And, given the current valuation (and interest in real estate deals), others may come to the table.

Biomet Deal Finally Gets Done: It took about eight months for Biomet(Pending:BMET) to sell itself (the company develops medical products, such as knee and hip replacements). But, its good a big number $10.9 billion. The buyer included a club of private equity firms: Blackstone Group, Goldman Sachs Capital Partners Kohlberg Kravis Roberts & Co.. and Texas Pacific Group.

Actually, the deal looks very attractive. There are opportunities to sell off assets. Also, the cash flows are reliable.

Besides, Biomet will now want to be private: it has found issues with its stock option grants.