Omnicare makes unsolicited offer to buy NeighborCare

Share this content:

Omnicare Inc., the nation's largest provider of prescription drugs and medical supplies to nursing homes, made an unsolicited offer to buy Baltimore-based NeighborCare Inc. for $1.35 billion Monday. Omnicare said it intends to expand its geographic reach and increase profits.

NeighborCare's board rejected a previous bid from Omnicare but said it would review this latest offer.

A deal would be the latest in a series of more than 100 acquisitions that Covington, KY-based Omnicare has made in the past 15 years.

The offer of $30 a share in cash represents a premium of 70% over NeighborCare's closing stock price on Friday of $17.67. Omnicare would absorb $260 million of NeighborCare debt and $90 million of NeighborCare cash.

The combined company could have revenues of more than $5 billion, Omnicare said.