CVS Health completes Omnicare transaction

WOONSOCKET, R.I — CVS Health on Tuesday completed its acquisition of Omnicare, the leading provider of pharmacy services to long term care facilities, for a total enterprise value of approximately $12.9 billion.

 

The move provides CVS Health access to a new pharmacy dispensing channel, Larry Merlo, CVS Health president and CEO said when announcing the deal earlier this year,  and creates new opportunities to capture seniors and chronic care patients. 

 

“This attractive strategic acquisition provides CVS with an incremental dispensing channel in long-term care and assisted living, which represents 72% of Omnicare’s revenues,” Mark Miller, analyst for William Blair, said. “Retail and long-term care are complementary channels, as patients cycle between assisted living and home health settings. CVS has a strong record of improving health outcomes at the lowest possible cost — a vision shared by Omnicare — and the combined companies should be able to improve gaps in existing care.”