The Chicago Entrepreneur

: CVS to acquire Oak Street Health in deal valued at $10.6 billion that’s a primary-care play

CVS Health Corp. CVS said Wednesday it has agreed to acquire Oak Street Health Inc. OSH in a deal with an enterprise value of about $10.6 billion, confirming recent reports. CVS will pay $39 for each Oak Street share in cash and will fund the deal through available resources and existing financing capacity, while committing to retaining its current credit ratings. “Combining Oak Street Health’s platform with CVS Health’s unmatched reach will create the premier value-based primary care solution,” said CVS Health President and CEO Karen S. Lynch, in a statement. CVS said it still expects to achieve adjusted per-share earnings of $8.70 to $8.90 for 2023, rising to about $9.00 in 2024 and about $10 in 2025. The company is expecting more than $500 million in synergy potential over time. The news sent Oak Street stock up 5% premarket. For more, see: CVS’s purchase of Oak Street Health would help the pharmacy’s primary-care goals, analysts say

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