CVS to Buy Omnicare, Drug-Benefits Provider, for $10.4 Billion

Woonsocket-based CVS Health Corp. is buying pharmacy-benefits provider Omnicare for $10.4 billion.

The company will pay $98 per share — 3.6 percent more than Omnicare’s closing share price on Wednesday.

“The acquisition of Omnicare significantly expands our business, providing CVS Health access into a new pharmacy dispensing channel,” CVS Health Chief Executive Larry Merlo said in a news release.

Along with buying the company, CVS will take on $2.3 billion in debt, 13,000 employees and 160 locations in 47 states across the United States.

The total value of the deal is $12.7 billion.

“We are pleased to have reached this agreement with CVS Health, one of the leading companies in the health care industry, which we believe will allow us to accelerate our mission of enhancing the quality and cost-effectiveness of care for complex patient populations,” said Omnicare President and CEO Nitin Sahney. “This exciting combination is the result of a broad and thorough review of our strategic options. On behalf of the Omnicare team, I’d like to thank our 13,000 employees whose hard work and dedication has enabled Omnicare to become a recognized leader in pharmacy services.”

With the acquisition of Omnicare, CVS Health will significantly expand its ability to dispense prescriptions in assisted living and long term care facilities, serving the senior patient population. CVS Health will also expand its presence in the rapidly growing specialty pharmacy business. Omnicare’s complementary specialty pharmacy platform and clinical expertise will augment CVS Health’s capabilities and enable CVS Health to continue to provide innovative and cost-effective solutions to patients and payors.