Caremark Rx completed its $6.7 billion acquisition of AdvancePCS, creating the nation's second-largest pharmacy benefits manager. The combined company, based in Nashville, has annual revenue of more than $20 billion, compared with $34 billion for market leader Medco Health Solutions. Under the stock and cash deal, AdvancePCS investors received the equivalent of 2.15 Caremark shares for every AdvancePCS share. Separately, Caremark replaced previous financing arrangements with a $550 million credit agreement led by Bank of America and a $500 receivables-backed loan for which Wachovia Bank is the administrative agent. -- by Mary Chris Jaklevic
Caremark, PCS create No. 2 drug benefits manager
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