This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

The Deal: CVS Bags Apria's Specialty Infusion Business

NEW YORK (The Deal) -- CVS Caremark Corp. (CVS) on Wednesday, Nov. 27, said it would acquire the specialty infusion business of Apria Healthcare Group in a deal that is valued at $2.1 billion.

The business to be acquired, Coram, is one of the nation's largest providers of infusion therapies and nutrition services to more than 20,000 patients each month. The Denver-based unit cares for patients via home visits as well as a national network of more than 85 locations.

Infusion therapies are treatments for chronic conditions including immune deficiencies, rheumatoid arthritis, multiple sclerosis and nutritional deficiencies. Costs related to the procedures are often covered under pharmacy benefits, depending on where the treatments take place.

Jon Roberts, president of Woonsocket, R.I.-based CVS's pharmacy services unit, said the deal would be a boost to the CVS business.

"Infusion will be a valuable component of our broad specialty pharmacy offering going forward," Roberts said. "Our comprehensive services will enable us to streamline care management for patients as well as their physicians, leading to better health outcomes while avoiding unnecessary costs."

CVS said it expects Coram to generate about $1.4 billion in sales during the first twelve months of ownership.

For Lake Forest, Calif.-based Apria, a Blackstone Group (BX) portfolio company, the deal provides a much needed cash infusion. Moody's Investors Service earlier this month put out a warning concerning the company's liquidity, saying in a report that it expects "that there are not sufficient liquidity sources to meet the company's sizable debt obligations absent a refinancing."

Apria chairman John G. Figueroa, who is also CEO of Coram, in a statement said that "CVS Caremark and Coram share a mutual commitment to provide patients with quality care."

Post-deal Apria will still be a provider of oxygen therapy, sleep apnea products and other services via a network of 500 locations.

Barclays (BCS) is serving as CVS' financial adviser, with Sullivan and Cromwell LLP acting as legal counsel and Dechert handling antitrust matters. Goldman, Sachs & Co. (GS) and Blackstone Advisory Partners acted as financial advisers to Apria, while Simpson Thacher & Bartlett served as legal adviser.

Written By Lou Whiteman

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,058.92 -20.65 -0.12%
S&P 500 1,999.94 +3.20 0.16%
NASDAQ 4,572.06 +14.3650 0.32%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs