Mergers & Acquisitions
Omnicare Buys Baltimore's NeighborCare
Omnicare, a provider of drugs and pharmacy services to U.S. nursing homes, agreed to buy Baltimore-based NeighborCare for $1.56 billion, ending a takeover fight that lasted more than a year. Omnicare had to raise its offer twice to the final price of $34.75 a share, 16 percent more than its original bid of $30 a share in May 2004.
The purchase allows Omnicare, which controls more than a third of the $7 billion-a-year pharmacy services market for nursing homes and assisted-living units, to cut costs and negotiate better drug prices by expanding its reach and consolidating operations, analysts said.
Omnicare will take on about $245 million of NeighborCare debt for a total acquisition cost of about $1.8 billion, the companies said in a statement. The deal is expected to close in the third quarter, the companies said.
New Investor for US Airways-America West
US Airways Group's plan to exit bankruptcy protection by merging with America West Holdings won more support, as hedge fund Tudor Investment agreed to add $65 million to $1.5 billion pledged by other investors. Tudor will receive 3.9 million shares in the combined airline, or a 6 percent stake, once the merger is completed, Arlington-based US Airways said in a statement.
Compiled from staff and news service reports.