Long-term-care pharmacy services firm Omnicare has made a $716 million, all-cash offer to acquire industry competitor PharMerica, whose board has so far rebuffed the advances of the potential buyer.
Omnicare makes $716 million offer for PharMerica
Officials with Omnicare, the Fortune 400 firm based in Covington, Ky., said they were perplexed that PharMerica's directors have not responded to their request to negotiate the possible acquisition “since it was PharMerica who first approached us regarding a transaction,” an Omnicare news release says.
Nevertheless, Omnicare plans to take its buyout offer directly to PharMerica stockholders if the board will not negotiate, according to a letter sent Wednesday to PharMerica's board members by Omnicare CEO John Figueroa.
Omnicare said it offered to purchase all PharMerica shares for $15 each, which was a 26% premium over the company's one-month average closing price for the period ended Aug. 22. Omnicare said it was confident the purchase would pass muster with the Federal Trade Commission.
For the six months ended June 30, PharMerica earned $10.7 million in income on $1.06 billion in revenue, making for a 1% margin.
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