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Omnicare Pharmacy

The Deal: Omnicare Inc. has executed an agreement to acquire NCS Healthcare Inc. Omnicare will pay $5.50 per share for NCS. Omnicare will also assume certain NCS debt, bringing the total value of the transaction to about $460 million. The deal has been unanimously approved by the boards of both companies and has already cleared the waiting period required by the Hart-Scott-Rodino Antitrust Act. The transaction is expected to close early in the first quarter of 2003. NCS Healthcare had previously agreed to be acquired by Genesis Health Ventures, but Genesis has agreed to terminate that agreement.

Discussion: NCS Healthcare provides pharmacy services to nursing homes, assisted living facilities, and other long-term care facilities in more than 30 states. The company also provides pharmacy consulting services such as drug purchasing and dispensing, drug therapy evaluation, and regulatory assistance.

Omnicare provides pharmacy and related services to about 8,600 institutions in the United States, primarily nursing homes. The company also provides computerized record keeping and billing services, drug therapy evaluation, drug administration monitoring, regulatory compliance oversight, and outcomes data.

The transaction will strengthen Omnicare's position as a leading provider of pharmacy care services to the elderly. The combined company will serve long-term care providers in 47 states.

Copyright NVST, Inc. Dec 23, 2002
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