Omnicare, Inc. (NYSE: OCR) and Walgreen Co. (NYSE: WAG) (NASDAQ: WAG)
today announced a transaction in which Omnicare will acquire
substantially all of the assets of Walgreens long-term care pharmacy
business. In exchange, Walgreens will acquire substantially all of the
assets of Omnicares home infusion business. Closing of the transaction,
which is subject to regulatory approvals and other conditions, is
expected to occur before Nov. 15, 2010. Financial terms were not
disclosed.
“Acquiring Omnicares infusion business
allows us to expand into currently underserved markets, while also
strengthening our position in existing markets. As the nations largest
provider of home infusion services, we are well-positioned to support
the rapidly expanding specialty drug pipeline that requires infusion.”
Walgreens intends to acquire substantially all of the assets of
Omnicares six home infusion locations operating in Maryland, Nevada,
Virginia, Pennsylvania and California, one compounding pharmacy location
operating in Nevada and one home care management location operating in
Maryland. Omnicare intends to acquire substantially all of the assets at
Walgreens long-term care pharmacy locations operating in Colorado,
Texas, Florida, Georgia and Maryland.
By divesting our long-term care pharmacy business, we are able to have
a stronger focus on our overall growth strategy while taking advantage
of a specific opportunity to grow our infusion services, said Walgreens
President and CEO Greg Wasson. Acquiring Omnicares infusion business
allows us to expand into currently underserved markets, while also
strengthening our position in existing markets. As the nations largest
provider of home infusion services, we are well-positioned to support
the rapidly expanding specialty drug pipeline that requires infusion.
Walgreens decided to exit the long-term care pharmacy business after
determining that, on a stand-alone basis, the business didnt have the
scale necessary to effectively grow to a leading position in its sector
without significant additional investment.
We are pleased with this transaction, as it allows us to redeploy our
resources towards a growth opportunity that better leverages our core
competencies and further expands our presence in the growing senior care
market, said Omnicares Interim President and CEO James D. Shelton. We
look forward to welcoming Walgreens long-term care pharmacy customers
onto the Omnicare platform. As Omnicare customers, they will have access
to an enhanced range of services that supports improving health outcomes
for the residents they serve.
Statements in this press release that are not historical are
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. These statements are not guarantees of
future performance and are subject to risks, uncertainties and
assumptions that could cause actual results to vary materially from
those indicated, including: the ability to satisfy the closing
conditions and timely consummate the proposed transactions, the ability
to successfully integrate the acquired businesses, the ability to
realize anticipated synergies and other factors described in Walgreenss
Annual Report on Form 10-K for the year ended August 31, 2009,
Omnicares Annual Report on Form 10-K for the year ended December 31,
2009 and their respective subsequent SEC filings, which risks and
uncertainties are incorporated herein by reference. You are
cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date of this press release.
Except to the extent required by law, Walgreens and Omnicare disclaim
any obligation to update any forward-looking statements after the
distribution of this press release, whether as a result of new
information, future events, changes in assumptions, or otherwise.
About Omnicare, Inc.
Omnicare, Inc., a Fortune 500 company based in Covington, Kentucky, is a
leading provider of pharmaceutical care for the elderly. Omnicare serves
residents in long-term care facilities, chronic care and other settings
comprising approximately 1.4 million beds in 47 states, the District of
Columbia and Canada. Omnicare is the largest U.S. provider of
professional pharmacy, related consulting and data management services
for skilled nursing, assisted living and other institutional healthcare
providers as well as for hospice patients in homecare and other
settings. Omnicares pharmacy services also include distribution and
patient assistance services for specialty pharmaceuticals. Omnicare
offers clinical research services for the pharmaceutical and
biotechnology industries in 32 countries worldwide. For more information
on Omnicare, visit www.omnicare.com.
About Walgreen Co.
Walgreens (www.walgreens.com)
is the nations largest drugstore chain with fiscal 2010 sales of $67.4
billion. The company operates 7,563 drugstores in all 50 states, the
District of Columbia and Puerto Rico. Each day, Walgreens provides
nearly 6 million customers the most convenient, multichannel access to
consumer goods and services and trusted, cost-effective pharmacy, health
and wellness services and advice in communities across America.
Walgreens scope of pharmacy services includes retail, specialty,
infusion, medical facility, long-term care and mail service, along with
pharmacy benefit solutions and respiratory services. These services
improve health outcomes and lower costs for payers including employers,
managed care organizations, health systems, pharmacy benefit managers
and the public sector. Walgreens Take Care Health Systems subsidiary is
the largest and most comprehensive manager of worksite health centers
and in-store convenient care clinics, with more than 700 locations
throughout the country.
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Source: Business Wire
