CVS to take over Omnicare in $12.7bn deal

CVS Health Corporation, the US-listed drugstore giant, is to buy healthcare group Omnicare for $98 per share in cash, valuing the nursing home and pharmacy services company at $10.4bn.

The total enterprise value of Omnicare has been set at $12.7bn, which includes $2.3bn in debt.

The deal, which values Omnicare at a 3.6% premium to Wednesday's closing price, will "significantly expand [CVS's] ability to dispense prescriptions in assisted living and long term care facilities, serving the senior patient population", the group said. It will also help CVS to expand its presence in the specialty pharmacy business.

The boards of both companies have approved the takeover, which is subject to approval by Omnicare's shareholders as well as a green light from regulators.

Omnicare has around 13,000 employees at 160 locations across the US.

CVS's president and chief executive Larry Merlo said Omnicare "creates new opportunities for us to extend our high-quality, innovative pharmacy programmes to a broader population of seniors and chronic care patients as they transition across the care continuum".