Omnicare Said to Draw Interest From CVS and Express Scripts
2015-04-30 18:11:53.182 GMT
By Ed Hammond and Jeffrey McCracken
(Bloomberg) -- Omnicare Inc., a supplier of drugs to
nursing homes, is drawing interest from potential buyers
including Express Scripts Holding Co. and CVS Health Corp.,
people with knowledge of the matter said.
Initial bids for Omnicare, which has a market value of
about $8.2 billion, are due in May, the people said, asking not
to be identified discussing private information. Omnicare is
working with Bank of America Corp. and Centerview Partners to
explore options including a possible sale, the people said.
Potential bidders also include Walgreens Boots Alliance
Inc. and McKesson Corp., the people said. For any of the
potential buyers, Omnicare would offer a way to boost earnings
and dividends, analysts have said.
Omnicare delivers drugs and helps senior-living facilities
manage their residents’ medications. Demand for such pharmacy
services is rising as patients, insurers and companies look for
ways to manage costs with drug prices on the rise, and pharmacy-
services providers are combining to gain a bigger piece of the
growing market.
There is no certainty Omnicare will reach a deal with any
of the bidders, one of the people cautioned. Representatives for
CVS, Express Scripts, McKesson and Walgreens declined to
comment.
A representative for Omnicare declined to comment, while
spokesmen for Bank of America and Centerview didn’t immediately
respond to requests for comment.
UnitedHealth Group Inc. agreed in March to buy Catamaran
Corp. for about $13 billion, including net debt. In February,
Rite Aid Corp. agreed to buy EnvisionRX from private-equity
owner TPG for about $2 billion.
Biggest Deal
Express Scripts became the biggest pharmacy-benefits
management company after purchasing Medco Health Solutions Inc.
three years ago for $34 billion including net debt, in what is
still the industry’s largest deal. CVS has the second-biggest
market share.
Executives at Express Scripts said Wednesday they delayed a
multibillion-dollar share buyback during the first quarter while
the company looked at deals, without naming a potential target.
For Related News and Information:
Express Scripts Delayed Billions in Buybacks to Evaluate Deals
Fight Over High-Cost Drugs to Intensify After Catamaran Deal
Top Stories:TOP<GO>
--With assistance from Tara Lachapelle, Zachary Tracer and
Cynthia Koons in New York.
To contact the reporters on this story:
Ed Hammond in New York at +1-212-617-1963 or
ehammond12@bloomberg.net;
Jeffrey McCracken in New York at +1-212-617-8517 or
jmccracken3@bloomberg.net
To contact the editors responsible for this story:
Mohammed Hadi at +1-212-617-2914 or
mhadi1@bloomberg.net
Elizabeth Wollman
2015-04-30 18:11:53.182 GMT
By Ed Hammond and Jeffrey McCracken
(Bloomberg) -- Omnicare Inc., a supplier of drugs to
nursing homes, is drawing interest from potential buyers
including Express Scripts Holding Co. and CVS Health Corp.,
people with knowledge of the matter said.
Initial bids for Omnicare, which has a market value of
about $8.2 billion, are due in May, the people said, asking not
to be identified discussing private information. Omnicare is
working with Bank of America Corp. and Centerview Partners to
explore options including a possible sale, the people said.
Potential bidders also include Walgreens Boots Alliance
Inc. and McKesson Corp., the people said. For any of the
potential buyers, Omnicare would offer a way to boost earnings
and dividends, analysts have said.
Omnicare delivers drugs and helps senior-living facilities
manage their residents’ medications. Demand for such pharmacy
services is rising as patients, insurers and companies look for
ways to manage costs with drug prices on the rise, and pharmacy-
services providers are combining to gain a bigger piece of the
growing market.
There is no certainty Omnicare will reach a deal with any
of the bidders, one of the people cautioned. Representatives for
CVS, Express Scripts, McKesson and Walgreens declined to
comment.
A representative for Omnicare declined to comment, while
spokesmen for Bank of America and Centerview didn’t immediately
respond to requests for comment.
UnitedHealth Group Inc. agreed in March to buy Catamaran
Corp. for about $13 billion, including net debt. In February,
Rite Aid Corp. agreed to buy EnvisionRX from private-equity
owner TPG for about $2 billion.
Biggest Deal
Express Scripts became the biggest pharmacy-benefits
management company after purchasing Medco Health Solutions Inc.
three years ago for $34 billion including net debt, in what is
still the industry’s largest deal. CVS has the second-biggest
market share.
Executives at Express Scripts said Wednesday they delayed a
multibillion-dollar share buyback during the first quarter while
the company looked at deals, without naming a potential target.
For Related News and Information:
Express Scripts Delayed Billions in Buybacks to Evaluate Deals
Fight Over High-Cost Drugs to Intensify After Catamaran Deal
Top Stories:TOP<GO>
--With assistance from Tara Lachapelle, Zachary Tracer and
Cynthia Koons in New York.
To contact the reporters on this story:
Ed Hammond in New York at +1-212-617-1963 or
ehammond12@bloomberg.net;
Jeffrey McCracken in New York at +1-212-617-8517 or
jmccracken3@bloomberg.net
To contact the editors responsible for this story:
Mohammed Hadi at +1-212-617-2914 or
mhadi1@bloomberg.net
Elizabeth Wollman