Omnicare, Inc. (NYSE: OCR) and Walgreen Co. (NYSE: WAG) (NASDAQ: WAG) have announced a deal in which Omnicare will acquire substantially all of the assets of Walgreens long-term care pharmacy business. As part of the transaction, Walgreens will acquire substantially all of the assets of Omnicare’s home infusion businesses 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. The divestiture of the long-term care pharmacy business was based upon the determination by Walgreens that the business wouldn’t meet its growth objectives without a significant investment.
“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 Omnicare’s infusion business allows us to expand into currently underserved markets, while also strengthening our position in existing markets. As the nation’s largest provider of home infusion services, we are well-positioned to support the rapidly expanding specialty drug pipeline that requires infusion.”
“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 Omnicare’s 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.”