WSJ News Exclusive | CVS Nearing $10.5 Billion Deal for Primary-Care Provider Oak Street Health
CVS, the parent of its namesake pharmacies, has signaled that primary care and home-based care are growth areas for the company.
Photo:
Gabby Jones for The Wall Street Journal
CVS Health Corp.
CVS -0.61%
is close to an agreement to acquire
Oak Street Health Inc.
OSH -2.48%
for about $10.5 billion including debt, a deal that would rapidly expand the big healthcare company’s footprint of primary-care doctors with a large network of senior-focused clinics, according to people with knowledge of the matter.
The companies are discussing a price of about $39 a share, the people said. The deal, if it goes through, could be announced as soon as this week, they said. CVS is scheduled to report earnings on Wednesday.
The agreement would come on the heels of CVS’s $8 billion agreement to acquire home-care provider
Signify Health Inc.
SGFY -0.95%
Together, the two acquisitions would push CVS, the parent of its namesake pharmacies as well as the huge Aetna health-insurance operation and a pharmacy-benefit manager, far deeper into the direct provision of healthcare.
CVS Chief Executive
Karen Lynch
had signaled that primary care and home-based care are key growth areas for the company.
Oak Street, which has more than 160 centers across 21 states, focuses on the care of patients enrolled in Medicare.
Bloomberg reported last month that CVS was exploring a deal for Oak Street Health.
Write to Anna Wilde Mathews at [email protected], Lauren Thomas at [email protected] and Laura Cooper at [email protected]
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