Thu, Jan. 14, 2:51 AM
- WebMD (NASDAQ:WBMD), the U.S. online health information publisher, is exploring the possible sale of all or part of its business, FT reports.
- The company is said to be in talks with Walgreens Boots Alliance (NASDAQ:WBA) and UnitedHealth (NYSE:UNH), among other potential buyers.
- Since the start of the year WebMD shares have risen 10%, giving the company a market value of close to $2B.
- Update: Shares are up 6% premarket on increased volume.
Nov. 2, 2015, 7:27 PM
- Walgreens Boots Alliance (WBA +2.2%) says it would be willing to sell off up to 1,000 stores in order to wrap a buyout of Rite Aid (RAD +0.6%).
- The company had said it had looked at antitrust concerns but hadn't put a number to what divestitures might be required.
- One thousand of the stores would come to 8% of the combined companies' total footprint, though in a presentation filed with the SEC, Walgreens "believes the most likely outcome is divestments of less than half this number."
- Walgreens said it expects the deal to be accretive during the first full year after closing, with synergies in excess of $1B, primarily from procurement, cost savings and operational synergies.
- Previously: Regulatory concerns surround Walgreens, Rite Aid deal (Oct. 29 2015)
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)
Oct. 27, 2015, 5:27 PM
- Confirming media reports, Walgreens Boots (NASDAQ:WBA) announces it's buying fellow drugstore owner Rite Aid (NYSE:RAD) for $17.2B after factoring debt, or $9/share, in cash. The deal is expected to close in 2H16; Walgreen expects to eventually reap over $1B/year in synergies.
- The price represents a 48% premium to Rite Aid's Monday close, and is also $0.33 above Rite Aid's Tuesday close of $8.67. Nonetheless, Rite Aid is down 6.3% after hours to $8.12, as a healthy M&A arb spread opens. Walgreens is up 0.9% to $96.00, after rising 6.4% in regular trading.
- Following the deal's closing, Rite Aid is expected to initially continue operating under its existing brand. However, decisions "will be made over time regarding the integration of the two companies, ultimately creating a fully harmonized portfolio of stores and infrastructure."
- Walgreens plans to finance the deal with both debt and existing cash. It's expected to be accretive in its first year after closing.
Oct. 27, 2015, 12:45 PM
- Rite Aid (NYSE:RAD) shares have reopened for trading with a 39.7% burst on a Dow Jones report that Walgreens Boots Alliance (NASDAQ:WBA) is close to a deal to acquire the firm.
- The deal -- which would link the No. 2 and No. 3 drugstore chains in the U.S. -- is expected to come tomorrow, sources tell Dow Jones.
- Typical takeover premiums could value Rite Aid at close to $10B in the purchase, vs. its pre-news $6B market cap.
- In its last quarter, Rite Aid’s profit sank due to cost of integrating recently acquired Envision Pharmaceutical Services, the WSJ notes.
- Updated 12:55 p.m.: Walgreens shares have spiked on the news as well, up 4.3%.
- Related: Riding The Rite Aid Roller Coaster (Oct. 27 2015)
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)
Apr. 23, 2015, 7:41 AM
- UBS estimates a buyer would have to pay $95 to acquire Omnicare (NYSE:OCR).
- Firm thinks Walgreens (NASDAQ:WBA) or Rite Aid (NYSE:RAD) could be interested, but are unlikely to pay up due to limited synergies.
- OCR increased management comp. in the event of a change in control, a possible indicator the company may be sold.
- Previously: Omnicare reportedly exploring sale; trading halted (Apr. 22)
Mar. 24, 2015, 10:25 AM
- A merger between Walgreens Boots Alliance (WBA -0.3%) and Rite Aid (RAD +1.3%) would lead to cost savings of between $400M and $650M, according to analysis from Credit Suisse.
- The investment firm also forecasts the merged drugstore operator would have to shed 3% of its stores to appease the FTC.
- RetailWire notes the new company would face some challenges with unions and higher borrowing costs.
- Rite Aid is up over 13% over the last month due in part to merger speculation.
- Previously: Walgreen Boots Alliance eyes U.S. drugstore acquisition (Mar. 12 2015)
- Previously: No quit in Walgreens-Rite Aid merger talk (Mar. 19 2015)
Mar. 19, 2015, 10:06 AM
- Shares of Rite Aid (RAD +3.8%) are higher again to extend on a rally fueled by Walgreens takeover rumors.
- Volume on Rite Aid over the last few sessions has been very elevated.
- Walgreen Boots Alliance (NASDAQ:WBA) is up over 6.6% for the week as investors don't scare off from the prospect of the company taking on the Rite Aid debt load.
- A big bet on Rite Aid is seen as a smarter play than buying up mom-and-pop chains.
Mar. 12, 2015, 2:33 PM
- Walgreen Boots Alliance (WBA +1.5%) is on the hunt for an acquisition in the U.S., according to the company's acting CEO
- "The next big one will probably be in the U.S. because it is such a big market," said Stefano Pessina at a retail conference.
- Shares of WBA are +9.8% since the Alliance Boots-Walgreen merger.
Sep. 24, 2014, 1:45 AM
- Walgreen (NYSE:WAG) is considering the sale of just over 50% of its infusion services business, in a deal that could value the unit at around $1.5B.
- The division offers infusion services at home and at care centers across the U.S. Infusion therapies are used for medical conditions such as bleeding disorders and serious infections.
- BofA has been hired by Walgreen for the sale, which has already attracted interest from several private equity firms.
May 18, 2014, 4:07 AM
- Walgreen (WAG) is thinking about buying the 55% in European peer Alliance Boots it doesn't own, The Sunday Times reports.
- Taking inspiration from Pfizer in its pursuit of AstraZeneca, Walgreen would then move its domicile to the U.K. or Switzerland in order to lower its tax rate and save billions of dollars a year.
- Walgreen purchased 45% of Boots in 2012 in a cash-and-stock deal worth $6.7B and has a three-year option to acquire the rest.
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.
Sep. 10, 2013, 9:54 AM
- Walgreen (WAG +0.2%) has agreed to acquire 76 retail drugstores and the specialty pharmacy business of Kerr Drugs, a privately held regional chain in North Carolina. The deal also includes a distribution center, although Kerr will retain its long-term care pharmacy business.
- While terms of the purchase weren't disclosed, Walgreen said Kerr's drugstores and specialty pharmacy operations generated sales of $381M in FY 2012.
- The deal expands Walgreen's presence in the "fast-growing" market of North Carolina, including into many smaller communities.
- Walgreen expects the transaction to close this year. (PR)
May 17, 2013, 12:48 PM
Walgreen (WAG +1.3%) and Alliance Boots receive the regulatory clearances for their equity investment in AmerisourceBergen (ABC +0.4%). The clearances permit both to purchase up to 7% of ABC in the open market, and the exercise of two warrants for 16% in the aggregate in 2016 and 2017.| May 17, 2013, 12:48 PM