Omnicare, Inc. and Walgreen Co. to Exchange Home Infusion and Long-Term Care Pharmacy Businesses

COVINGTON, Ky. & DEERFIELD, Ill.--(BUSINESS WIRE)--Omnicare, Inc. (NYSE: OCR) and Walgreen Co. (NYSE: WAG) (NASDAQ: WAG) today announced a transaction in which Omnicare will acquire substantially all of the assets of Walgreens long-term care pharmacy business. In exchange, Walgreens will acquire substantially all of the assets of Omnicare’s home infusion business. Closing of the transaction, which is subject to regulatory approvals and other conditions, is expected to occur before Nov. 15, 2010. Financial terms were not disclosed.

“Acquiring Omnicare’s infusion business allows us to expand into currently underserved markets, while also strengthening our position in existing markets. As the nation’s largest provider of home infusion services, we are well-positioned to support the rapidly expanding specialty drug pipeline that requires infusion.”

Walgreens intends to acquire substantially all of the assets of Omnicare’s six home infusion locations operating in Maryland, Nevada, Virginia, Pennsylvania and California, one compounding pharmacy location operating in Nevada and one home care management location operating in Maryland. Omnicare intends to acquire substantially all of the assets at Walgreens long-term care pharmacy locations operating in Colorado, Texas, Florida, Georgia and Maryland.

“By divesting our long-term care pharmacy business, we are able to have a stronger focus on our overall growth strategy while taking advantage of a specific opportunity to grow our infusion services,” said Walgreens President and CEO Greg Wasson. “Acquiring Omnicare’s infusion business allows us to expand into currently underserved markets, while also strengthening our position in existing markets. As the nation’s largest provider of home infusion services, we are well-positioned to support the rapidly expanding specialty drug pipeline that requires infusion.”

Walgreens decided to exit the long-term care pharmacy business after determining that, on a stand-alone basis, the business didn’t have the scale necessary to effectively grow to a leading position in its sector without significant additional investment.

“We are pleased with this transaction, as it allows us to redeploy our resources towards a growth opportunity that better leverages our core competencies and further expands our presence in the growing senior care market,” said Omnicare’s Interim President and CEO James D. Shelton. “We look forward to welcoming Walgreens long-term care pharmacy customers onto the Omnicare platform. As Omnicare customers, they will have access to an enhanced range of services that supports improving health outcomes for the residents they serve.”

Statements in this press release that are not historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions that could cause actual results to vary materially from those indicated, including: the ability to satisfy the closing conditions and timely consummate the proposed transactions, the ability to successfully integrate the acquired businesses, the ability to realize anticipated synergies and other factors described in Walgreens's Annual Report on Form 10-K for the year ended August 31, 2009, Omnicare’s Annual Report on Form 10-K for the year ended December 31, 2009 and their respective subsequent SEC filings, which risks and uncertainties are incorporated herein by reference. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Except to the extent required by law, Walgreens and Omnicare disclaim any obligation to update any forward-looking statements after the distribution of this press release, whether as a result of new information, future events, changes in assumptions, or otherwise.

About Omnicare, Inc.

Omnicare, Inc., a Fortune 500 company based in Covington, Kentucky, is a leading provider of pharmaceutical care for the elderly. Omnicare serves residents in long-term care facilities, chronic care and other settings comprising approximately 1.4 million beds in 47 states, the District of Columbia and Canada. Omnicare is the largest U.S. provider of professional pharmacy, related consulting and data management services for skilled nursing, assisted living and other institutional healthcare providers as well as for hospice patients in homecare and other settings. Omnicare's pharmacy services also include distribution and patient assistance services for specialty pharmaceuticals. Omnicare offers clinical research services for the pharmaceutical and biotechnology industries in 32 countries worldwide. For more information on Omnicare, visit www.omnicare.com.

About Walgreen Co.

Walgreens (www.walgreens.com) is the nation's largest drugstore chain with fiscal 2010 sales of $67.4 billion. The company operates 7,563 drugstores in all 50 states, the District of Columbia and Puerto Rico. Each day, Walgreens provides nearly 6 million customers the most convenient, multichannel access to consumer goods and services and trusted, cost-effective pharmacy, health and wellness services and advice in communities across America. Walgreens scope of pharmacy services includes retail, specialty, infusion, medical facility, long-term care and mail service, along with pharmacy benefit solutions and respiratory services. These services improve health outcomes and lower costs for payers including employers, managed care organizations, health systems, pharmacy benefit managers and the public sector. Walgreens Take Care Health Systems subsidiary is the largest and most comprehensive manager of worksite health centers and in-store convenient care clinics, with more than 700 locations throughout the country.