Omnicare (OCR) Issues Comment Following FTC Decision on PharMerica (PMC) Bid
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Omnicare, Inc. (NYSE: OCR) issued the following statement responding to the Federal Trade Commission’s (FTC) split (3 to 1) decision to issue an administrative complaint to block Omnicare’s offer to purchase all outstanding shares of PharMerica Corporation (NYSE: PMC) common stock for $15.00 per share in cash.
“We strongly disagree with the FTC's decision to seek to block the proposed transaction. We also disagree with the FTC‘s claim for the need to protect insurance companies as a result of this combination. The FTC has already examined the institutional pharmacy industry, noting the numerous players and explaining how the ease of entry and other market conditions facilitate competition. The institutional pharmacy business is competitive and Omnicare is confident it would remain so after the transaction.
“Omnicare continues to believe that a transaction with PharMerica will provide customers a broader array of service offerings, as well as advance the country’s effort to lower overall healthcare costs. Through expanding services and reducing costs, Omnicare expects to help customers manage and respond to ongoing industry pressures.”
Goldman, Sachs & Co. is acting as financial advisor to Omnicare and dealer manager for the offer and Dewey & LeBoeuf LLP and Axinn, Veltrop & Harkrider LLP are acting as legal counsel.
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“We strongly disagree with the FTC's decision to seek to block the proposed transaction. We also disagree with the FTC‘s claim for the need to protect insurance companies as a result of this combination. The FTC has already examined the institutional pharmacy industry, noting the numerous players and explaining how the ease of entry and other market conditions facilitate competition. The institutional pharmacy business is competitive and Omnicare is confident it would remain so after the transaction.
“Omnicare continues to believe that a transaction with PharMerica will provide customers a broader array of service offerings, as well as advance the country’s effort to lower overall healthcare costs. Through expanding services and reducing costs, Omnicare expects to help customers manage and respond to ongoing industry pressures.”
Goldman, Sachs & Co. is acting as financial advisor to Omnicare and dealer manager for the offer and Dewey & LeBoeuf LLP and Axinn, Veltrop & Harkrider LLP are acting as legal counsel.
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