SAN DIEGO and CINCINNATI, May 21,
2015 /PRNewswire/ -- Shareholder rights attorneys at
Robbins Arroyo LLP are investigating the proposed acquisition of
Omnicare Inc. (NYSE: OCR) by CVS Health Corporation (NYSE: CVS). On
May 21, 2015, the two companies
announced the signing of a definitive merger agreement pursuant to
which CVS will acquire Omnicare. Under the terms of the
agreement, Omnicare shareholders will receive $98.00 in cash for each share of Omnicare common
stock.
View this information on the law firm's Shareholder Rights Blog:
www.robbinsarroyo.com/shareholders-rights-blog/omnicare-incorporated
Is the Proposed Acquisition Best for Omnicare and Its
Shareholders?
Robbins Arroyo LLP's investigation focuses on whether the board
of directors at Omnicare is undertaking a fair process to obtain
maximum value and adequately compensate its shareholders.
As an initial matter, the $98.00
merger consideration represents a premium of only 6.7% based on
Omnicare's closing price on May 14,
2015. This premium is significantly below the average
one-week premium of nearly 30% for comparable transactions within
the past three years. Further, the $98.00 merger consideration is below the target
price of $104.00 set by an analyst at
UBS on May 15, 2015.
On April 29, 2015, Omnicare
reported strong quarterly earnings results for its first quarter
2015. Net sales increased to $1.7
billion, an increase of 5.7% compared to the first quarter
of last year. Also, adjusted operating income from continuing
operations increased 8.5% and cash flows from continuing operations
increased 96% to a record quarter level of $336 million. Additionally, Omnicare beat
consensus analyst estimates for adjusted EPS and sales in every
quarter for the past year. In commenting on these results, Omnicare
President and Chief Executive Officer Nitin
Sahney remarked, "The first quarter marked a successful
beginning to the year with double-digit adjusted cash earnings per
share growth. We continued our disciplined approach to growth by
optimizing on our core competencies and driving efficiency through
our operations. The first quarter of 2015 attests to the success of
our organization in providing comprehensive services and positions
us well as a key player in the continued evolution of innovative
and cost-effective patient care solutions."
In light of these facts, Robbins Arroyo LLP is examining
Omnicare's board of directors' decision to sell the company now
rather than allow shareholders to continue to participate in the
company's continued success and future growth prospects.
Omnicare shareholders have the option to file a class action
lawsuit to ensure the board of directors obtains the best possible
price for shareholders and the disclosure of material information.
Omnicare shareholders interested in information about their rights
and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003,
ddonahue@robbinsarroyo.com, or via the shareholder information form
on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in
securities litigation and shareholder rights law. The law
firm represents individual and institutional investors in
shareholder derivative and securities class action lawsuits, and
has helped its clients realize more than $1
billion of value for themselves and the companies in which
they have invested.
Attorney Advertising. Past results do not guarantee a
similar outcome.
Contact:
Darnell R. Donahue
Robbins Arroyo LLP
600 B Street, Suite 1900
San Diego, CA 92101
ddonahue@robbinsarroyo.com
(619) 525-3990 or Toll Free (800) 350-6003
www.robbinsarroyo.com
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SOURCE Robbins Arroyo LLP