Five Star Quality Care to Sell Off Pharmacy Business to Omnicare for $30.7 Million
Newton, Mass.-headquartered Five Star Quality Care, Inc. (NYSE:FVE) announced on Monday its agreement to sell its pharmacy business to Omnicare (NYSE:OCR) for $30.7 million. The senior living and healthcare services company anticipates the sale of this business will result in a capital gain to Five Star of approximately $23.5 million.
The senior living company’s pharmacy business includes eight licensed pharmacies that operate in 13 states and provide institutional pharmacy services to 247 senior living communities with approximately 12,300 living units.
The agreement also provides that Five Star will sell to Omnicare, or retain, certain items of net working capital invested in its pharmacy business as of the closing of the transaction, which, based on March 31, 2012 amounts, would equal approximately $9.4 million. Because of this, Five Star anticipates its net cash receipts resulting from this sale will be approximately $39.9 million, before transaction costs.
Five Star anticipates the sale will be completed during the second half of 2012.
Jefferies & Company, Inc. acted as Five Star’s financial adviser in this sale process.
Written by Alyssa Gerace
Category: Acquisitions, Long Term Care, Senior Care, Senior Housing, Senior Living
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