COVINGTON, Ky., Jan. 8 /PRNewswire/ -- Omnicare, Inc. (NYSE: OCR) announced today that it has completed the previously announced acquisition of the assets comprising the pharmaceutical business of American Pharmaceutical Services, Inc. and other related entities ("APS"), wholly-owned subsidiaries of Mariner Post-Acute Network ("MPAN") or Mariner Health Group ("MHG"). Combined, MPAN and MHG represent one of the nation's largest providers of post-acute healthcare services, primarily through the operation of skilled nursing facilities.
On December 6, 2001, Omnicare announced that, following a successful bid for APS in an auction process established as part of the bankruptcy proceedings of MPAN and MHG, it had executed a definitive agreement to acquire APS. The purchase price for the transaction was $97 million in cash plus $18 million in deferred cash payments contingent upon performance. Given the anticipated realization of economies of scale and cost synergies from the acquisition, it will be accretive to Omnicare's diluted per share earnings in 2002 and beyond.
APS, headquartered in Naperville, Illinois, provides professional pharmacy and related consulting services to approximately 60,000 residents of skilled nursing and assisted living facilities. It also provides respiratory and Medicare Part B services for residents of long-term care facilities. APS serves these residents through its network of 32 pharmacies in 15 states. APS assets to be acquired are expected to generate revenues of approximately $240 million for the twelve-months ended December 31, 2002.
Omnicare, based in Covington, Kentucky, is a leading geriatric pharmaceutical care company. Including the acquisition of APS, Omnicare now serves approximately 715,000 residents in long-term care facilities, in 43 states, making it the nation's largest provider of professional pharmacy, related consulting and data management services for skilled nursing, assisted living and other institutional healthcare providers. Omnicare also provides clinical research services for the pharmaceutical and biotechnology industries in 27 countries worldwide. Omnicare's total revenues are currently running at an annual rate in excess of $2 billion.
For more information on Omnicare, Inc., via the Internet, including a full menu of news releases, visit http://www.omnicare.com or http://prnewswire.com/comp/136781.html .
Statements in this press release concerning Omnicare's business outlook or position or future economic performance; the expected benefits from the APS acquisition, including economies of scale, cost synergies, and earnings and revenue impact; together with other statements that are not historical, are forward-looking statements that are estimates reflecting the best judgment of Omnicare (without the participation of APS) based on currently available information. Such forward-looking statements involve actual known and unknown risks, uncertainties, contingencies and other factors that could cause actual results, performance or achievements to differ materially from those stated. Such risks, uncertainties, contingencies and other factors, many of which are beyond the control of Omnicare, include overall economic, financial and business conditions; trends for the continued growth of the businesses of Omnicare; the realization of anticipated revenues, economies of scale, cost synergies and profitability; the successful integration of APS and other acquired companies; the ability to implement productivity, consolidation and cost reduction efforts and to realize anticipated benefits; delays in reimbursement by the government and other payors to customers and Omnicare; the overall financial condition of Omnicare's customers; Omnicare's ability to assess and react to the financial condition of its customers; the impact of seasonality on the business of Omnicare; pricing and other competitive factors in the industry; the effect of new government regulations, executive orders and/or legislative initiatives, including those relating to reimbursement and drug pricing policies and in the interpretation and application of such policies; government budgetary pressures and shifting priorities; the outcome of litigation; the failure of Omnicare to obtain or maintain required regulatory approvals or licenses; the ability to attract and retain needed management; the impact and pace of technological advances; the ability to obtain or maintain rights to data, technology and other intellectual property; volatility in Omnicare's stock price; access to capital and financing; the demand for Omnicare's products and services; variations in costs or expenses; the continued availability of suitable acquisition candidates; changes in tax law and regulation; changes in accounting rules and standards; and other risks and uncertainties described in Omnicare's reports and filings with the Securities and Exchange Commission.
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CONTACT: Cheryl D. Hodges for Omnicare, +1-859-392-3331