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CVS Caremark Completes Acquisition of Coram Infusion Business from Apria Healthcare
Friday, January 17, 2014
WOONSOCKET, R.I., Jan. 17, 2014 /PRNewswire/ --CVS Caremark (NYSE: CVS) today announced that it has completed the acquisition of Coram LLC ("Coram"), the specialty infusion services and enteral nutrition business unit of Apria Healthcare Group Inc. Coram is one of the nation's largest providers of comprehensive infusion services, caring for approximately 165,000 patients annually. Coram has 4,600 employees, including 600 nurses, 350 pharmacists and 250 dietitians, operating primarily through 85 branch locations and six centers of excellence for patient intake.
"With the acquisition of Coram, we have expanded our competitive offerings in specialty services," said Jon Roberts, President of CVS Caremark Pharmacy Services. "From a capabilities perspective, no other organization brings the range of specialty assets, the depth of experience and integration of care that the combination of CVS Caremark and Coram can deliver."
With Coram, CVS Caremark will have comprehensive resources to more effectively manage the cost of specialty drugs, including infused therapies, whether they are covered through the medical or the pharmacy benefit. For patients this means better clinical outcomes, while payors will see lower total health care costs.
The acquisition is consistent with CVS Caremark's goal of investing in core businesses that help drive growth. Coram is expected to generate approximately $1.4 billion in revenues during the first twelve months following the close of the deal. Including one-time transaction and integration costs, as well as the interest associated with the $2 billion of senior notes issued to fund this transaction, the transaction is expected to have an immaterial impact on CVS Caremark's overall financial results in 2014. The transaction is expected to add $0.03 to $0.05 cents to the Company's Adjusted Earnings Per Share in 2015, the first full year following the close of the deal.
Barclays served as the Company's financial advisor on the transaction, while Sullivan and Cromwell LLP served as legal advisor, and Dechert LLP served as legal advisor from an anti-trust perspective.
About CVS Caremark
CVS Caremark is dedicated to helping people on their path to better health as the largest integrated pharmacy company in the United States. Through the company's more than 7,600 CVS/pharmacy stores; its leading pharmacy benefit manager serving more than 60 million plan members; and its retail health clinic system, the largest in the nation with more than 800 MinuteClinic locations, it is a market leader in mail order, retail and specialty pharmacy, retail clinics, and Medicare Part D Prescription Drug Plans. As a pharmacy innovation company with an unmatched breadth of capabilities, CVS Caremark continually strives to improve health and lower costs by developing new approaches such as its unique Pharmacy Advisor program that helps people with chronic diseases such as diabetes obtain and stay on their medications. Find more information about how CVS Caremark is reinventing pharmacy for better health at info.cvscaremark.com.
This press release contains certain forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially. For these statements, the Company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. The Company strongly recommends that you become familiar with the specific risks and uncertainties outlined under the Risk Factors section in our Annual Report on Form 10-K for the year ended December 31, 2012 and under the section entitled "Cautionary Statement Concerning Forward-Looking Statements" in our most recently filed Quarterly Report on Form 10-Q.
SOURCE CVS Caremark