Omnicare, Walgreen announce closing of transaction

Omnicare, Inc. (NYSE: OCR) and Walgreen Co. (NYSE: WAG) (NASDAQ: WAG) today announced a transaction in which Omnicare will acquire substantially all of the assets of Walgreens long-term care pharmacy business. In exchange, Walgreens will acquire substantially all of the assets of Omnicare's home infusion business. Closing of the transaction, which is subject to regulatory approvals and other conditions, is expected to occur before Nov. 15, 2010. Financial terms were not disclosed.

“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.”

Walgreens intends to acquire substantially all of the assets of Omnicare's six home infusion locations 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.

"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."

Walgreens decided to exit the long-term care pharmacy business after determining that, on a stand-alone basis, the business didn't have the scale necessary to effectively grow to a leading position in its sector without significant additional investment.

"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."