CVS to buy Apria’s infusion-treatment unit for $2.1 billion

CVS Caremark Corp., the largest provider of prescription drugs in the U.S., agreed to buy Coram LLC from Apria Healthcare Group Inc. for about $2.1 billion to add specialty infusion services, its biggest deal in five years. More

To continue reading this article, please do one of the following.



health care

CVS to buy Apria’s infusion-treatment unit for $2.1 billion

BLOOMBERG FILE PHOTO/DAVID PAUL MORRIS
CVS CAREMARK CORP. has agreed to buy Coram LLC -- Apria Healthcare Group Inc.'s infusion-treatment unit -- for $2.1 billion. The purchase will expand CVS, which also operates the second-largest U.S. drugstore chain, into the business of providing therapies such as antibiotics, nutrition and pain medicine through needles or catheters into patients’ veins.
Posted 11/27/13

NEW YORK – CVS Caremark Corp., the largest provider of prescription drugs in the U.S., agreed to buy Coram LLC from Apria Healthcare Group Inc. for about $2.1 billion to add specialty infusion services, its biggest deal in five years.

The acquisition won’t have a material impact on 2014 results and will add adjusted earnings of as much as 5 cents a share in 2015, Woonsocket-based CVS said today in a statement. CVS said the unit will have about $1.4 billion in revenue in the first 12 months after the deal closes.

The purchase will expand CVS, which also operates the second-largest U.S. drugstore chain, into the business of providing therapies such as antibiotics, nutrition and pain medicine through needles or catheters into patients’ veins. Coram, based in Denver, provides such services to more than 20,000 patients a month at 85 locations nationwide.

The deal would be the largest for CVS since the company bought Longs Drug Stores for about $2.8 billion in 2008, beating Walgreen Co. in a bidding contest.

The acquisition also is the third-largest in the North American drug-retail industry in the past five years, trailing Loblaw Cos.’s agreement to buy Shoppers Drug Mart this year and Walgreen’s purchase of a 45 percent stake in Alliance Boots GmbH last year.

CVS rose 0.7 percent to $66.54 at 9:32 a.m. in New York. The shares gained 37 percent this year through yesterday, outperforming the 26 percent increase in the Standard & Poor’s 500 Index while trailing the 61 percent advance of Deerfield, Ill.-based Walgreen.

Apria, a medical-equipment provider owned by Blackstone Group LP, purchased Coram for $350 million in 2007.

Walgreen operates the largest U.S. drugstore chain.

Barclays served as CVS’s financial adviser on the deal, while Sullivan & Cromwell LLP served as legal adviser and Dechert LLP provided legal advice from an antitrust perspective.

Calendar
PBN Hosted
Events

DEADLINE EXTENDED to Friday, October 3rd for applications for the 14th Annual Business Excellence Awards Program. And save the date for the Awards Dinner - November 12th at the Providence Marriott.
Advertisement
Purchase Data
Book of Lists
Lists
Book of Lists cover
PBN's annual Book of Lists has been an essential resource for the local business community for almost 30 years. The Book of Lists features a wealth of company rankings from a variety of fields and industries, including banking, health care, real estate, law, hospitality, education, not-for-profits, technology and many more.
Data icons
Data can be purchased as single lists, in either Excel or PDF format; the entire database of the published book, in Excel format; or a printed copy of the Book of Lists.
  • Purchase an e-File of a single list
  •  
  • Purchase an e-File of the entire Book of Lists database
  •  
  • Purchase a printed copy of the Book of Lists
  •  
    National
    Local
    Latest News
    Advertisement