Uncommon Profit Investor • 21 Comments
Wed, Sep. 28, 9:19 AM
- Private equity firms aren't showing a great deal of interest in the 650 retail stores being unloaded by Walgreens Boots Alliance (NASDAQ:WBA) in order to comply with the FTC's ruling on the Rite Aid (NYSE:RAD) merger, reports New York Post. Many of the stores are seen as unprofitable investments.
- The lack of interest could pave the way for CVS Health (NYSE:CVS) to step in and buy stores selectively if the FTC and Walgreens back off the stated goal of finding a single buyer.
- The 650 units on the sales block only represent 5% of the total Walgreens-Rite Aid store count.
Oct. 29, 2015, 2:32 AM
- Top antitrust lawmakers in the U.S. Senate are calling for close scrutiny of Walgreens Boots Alliance's (NASDAQ:WBA) plan to buy Rite Aid (NYSE:RAD), the latest healthcare consolidation following the rollout of the Affordable Care Act.
- The deal would unite two of the three largest U.S. drugstore chains, the other being CVS Health (NYSE:CVS).
- Walgreens Chief Executive Stefano Pessina said previously that the company had analyzed the antitrust aspect of the deal but did not speculate on the number of drugstores it might need to divest in order to win regulatory approval.
- Previously: Walgreens buying Rite Aid for $17.2B ($9/share) (Oct. 27 2015)
Jun. 15, 2015, 7:15 AM
- CVS Health (NYSE:CVS) acquires the pharmacy and clinic business of Target (NYSE:TGT) for $1.9B.
- The deal will cover more than 1.6K locations spread across 47 different U.S. states.
- The pharmacies will continue to operate within Target stores rebranded under the CVS format.
- The agreement also calls for Target and CVS to partner on ten new small-format stores.
- Target sees extra traffic resulting from the strategic agreement with CVS, while the expansion falls under a plan to CVS to grow its store base.
May 21, 2015, 7:32 AM
- CVS Health (NYSE:CVS) confirms it will acquire Omnicare (NYSE:OCR) for $98 per share in a deal valued at $12.7B.
- The transaction is expected to close near the end of the year.
- The company sees the purchase adding $0.20 to EPS in 2016
- Previously: Bloomberg: CVS in advanced talks to buy Omnicare
- OCR +1.39% premarket to $95.95.
- CVS +1.77% premarket to $103.06.
May 20, 2015, 6:15 PM
- CVS is in advanced talks to buy nursing home pharmacy owner Omnicare (NYSE:OCR) and could reach a deal as soon as this week, sources tell Bloomberg.
- Omnicare hired advisors to find a buyer earlier this year. In April, Bloomberg reported CVS was one of several interested parties.
- OCR +5.7% AH to $100.00. CVS +0.5% to $101.80.
Apr. 30, 2015, 4:08 PM
- According to Bloomberg, the list of firms that have indicated an interest in Omnicare (NYSE:OCR) include Express Scripts (NASDAQ:ESRX), CVS Health (NYSE:CVS), Walgreens Boots Alliance (NASDAQ:WBA) and McKesson (NYSE:MCK). Initial bids for the $8.5B market cap firm are due in May.
- Previously: Omnicare reportedly exploring sale; trading halted (April 22)
- Previously: Omnicare buyer would need to pay $95/share - UBS (April 23)
Jun. 6, 2014, 11:37 AM
- Analysts say Humana (HUM +1.7%) is exploring strategic alternatives for its pharmacy benefit management business including an outright sale which could fetch as much as $7B. The unit is projected to generate ~$15.5B in revenues this year. Options other than a sale include renegotiating the pricing of generic drugs and outsourcing certain operations. Potential buyers may include CVS Caremark (CVS +0.6%), Express Scripts (ESRX +0.4%) and Catamaran (CTRX +1.1%).
May 23, 2014, 7:14 AM
- CVS Caremark (CVS) is still in talks for a deal to acquire Brazil's Drogarias Pacheco São Paulo after its first bid of $2B was rejected, according to the WSJ.
- DPSP reportedly wants a sale price of at least $2.2B.
- An acquisition of DPSP would give CVS a quick entry into the Latin America drugstore market.
May 22, 2014, 3:30 PM
Feb. 28, 2014, 12:49 PM
Nov. 27, 2013, 11:00 AM
- CVS Caremark's (CVS) agreement to acquire Coram, the specialty infusion services and enteral nutrition business unit of Apria Healthcare Group, for approximately $2.1B will strengthen its position relative to market leader Walgreens (WAG), Wells Fargo says.
- "This transaction should strengthen CVS' positioning in the specialty pharmaceutical business, which we believe is increasingly critical in driving growth for the PBMs, particularly as we believe historical sources of earnings growth taper (including generics and mail order). Walgreens is currently the market leader in the specialty pharmacy business, followed closely by CVS and the acquisition of Coram should strengthen CVS' positioning."
- "Prior to Caremark being solely a PBM, it was one of the largest home infusion therapy companies in the country, but Caremark sold these assets in 1995 to Coram for about $310M in cash and preferred stock, with estimated revenues of under $500M. Today's announcement will bring back this business despite the now resolved litigated history regarding the original sale, though Coram is now considerably larger and includes ambulatory infusion sites."
- Coram peer BioScrip (BIOS) is +20% today, a move that appears directly related to the acquisition of Coram.
Nov. 27, 2013, 8:48 AM
- CVS Caremark (CVS) beefs up its specialty pharmacy offerings, agreeing to buy specialty infusion services and enteral nutrition business Coram, LLC from Apria Healthcare for about $2.1B.
- Coram is expected to generate about $1.4B in revenue in the first year following the deal's close (expected in Q1), but to have a negligible impact on CVS' overall 2014 results. The purchase is expected to add $0.03-$0.05 to EPS in 2015.
Oct. 22, 2013, 2:44 PM
Sep. 27, 2011, 8:57 AM
AmerisourceBergen (ABC) will acquire CVS Caremark's (CVS) TheraCom unit for $250M, expanding the drug wholesaler's consulting services offerings and pharmacy benefit reimbursement capabilities. TheraCom generates ~$700M in annual revenue, and the deal is expected to slightly boost ABC's 2013 earnings.| Sep. 27, 2011, 8:57 AM
Jul. 22, 2011, 8:49 AM
Analysts see strong opposition to the $29B merger of Express Scripts (ESRX) and Medco (MHS), which would leave the industry with just one other independent company, CVS. “It’s going to be a very tough fight through the Federal Trade Commission,” industry consultant Adam Fein says, expecting pharmacists and drug makers to try to block the deal.| Jul. 22, 2011, 8:49 AM
Jul. 21, 2011, 1:08 PM
Shares of retail pharmacies Walgreen (WAG -3.7%) and CVS (CVS +2.9%) move in opposite directions as a result of the merger of Express Scripts (ESRX +5.7%) and Medco (MHS +15.1%). With Medco and ESRX focused on integrating, CVS may be able to swipe some customers. But with WAG losing its contract with ESRX, it may have few alternatives for pharmacy benefit services.| Jul. 21, 2011, 1:08 PM | 1 Comment