CVS Health closes acquisition of Oak Street Health

• CVS Health (NYSE:CVS) announced the completion of its $10.6B acquisition of primary care company Oak Street Health on Tuesday, following a last-minute deal to raise $5.0B to finance the transaction.
• In February, the pharmacy retailer announced an all-cash deal to acquire the Chicago, Illinois-based Oak Street (OSH), which operates a network of primary care centers.
• The offer price of $39 per share indicated an enterprise value of ~$10.6B for the value-based primary care company focused on older adults.
• CVS (CVS) said it reached a term loan agreement on Monday to secure $5B in borrowings to fund the transaction along with its existing cash and available resources. More details on the acquisition are expected during the company’s Q1 2023 earnings call on Wednesday.
• The proposed transaction sparked antitrust concerns in March when Sen. Elizabeth Warren (D-MA) urged the Federal Trade Commission to investigate the deal.

More on the acquisition

• Oak Street Health gains as antitrust waiting period for CVS acquisition expired
• Oak Street Health And CVS Health: Potential Strategic Merger