Express Scripts (ESRX: Quote) completed its $29.1 billion acquisition of Medco Health Solutions. The new Express Scripts combines clinical expertise and innovative applications of behavioral science to enhance patient health while driving down the cost of healthcare. Combining the companies' complementary offerings would create better models of care and improve patients' adherence to prescribed treatment regimens.
Commenting on the merger, George Paz, chairman and chief executive officer, Express Scripts stated, "It represents the next chapter of our mission to lower costs, drive out waste in healthcare and improve patient health. We remain focused on formulary management, channel management and closing gaps in care, which will allow us to further improve the health of people with chronic and complex medical conditions."
Following consummation of the purchase, each share of pre-closing Medco common stock was converted into the right to receive $28.80 in cash, without interest and 0.81 common shares of the new Express Scripts, a holding company which would own 100% of each of the existing Express Scripts and Medco, and each share of the pre-closing Express Scripts common stock was converted into one share of new Express Scripts common stock.
As already announced, the company expects synergies of $1 billion once fully integrated, representing nearly 1 percent of the combined company's costs. The transaction is expected to be slightly accretive to earnings per share, excluding integration and deal-related costs and charges, in the first full year after closing and moderately accretive once fully integrated.
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by RTT Staff Writer
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