Omnicare Announces $250 Million Accelerated Share Repurchase Program
CINCINNATI, November 29, 2012 - Omnicare, Inc. (NYSE: OCR) today announced it has entered into an Accelerated Share Repurchase (ASR) agreement with Goldman, Sachs & Co. to repurchase an aggregate of $250 million of the Company's common stock. The ASR is part of the Omnicare's existing share repurchase program, which had approximately $498 million available as of September 30, 2012.
"Returning value to shareholders is a key component of our capital allocation program," said Rocky Kraft, Omnicare's Chief Financial Officer. "This accelerated share repurchase program is a strong statement about the long-term prospects of the Company. At the same time, this program is consistent with the capital allocation plans we have put in place to achieve our previously targeted high single digit cash EPS compound annual growth rate for the two-year period ending 2013."
Under the ASR agreement, Omnicare will receive approximately 5.8 million shares at the inception of the ASR. The total number of shares ultimately repurchased under the agreement will be determined upon final settlement, using prices based generally on the average of the daily volume-weighted average price of the Company's common stock over a period of time expected to end in the first half of 2013.
The ASR will be funded through existing cash on hand and/or cash flows from operations.
Omnicare, Inc., a Fortune 400 company based in Cincinnati, Ohio, provides comprehensive pharmaceutical services to patients and providers across North America. As the market-leader in professional pharmacy, related consulting and data management services for skilled nursing, assisted living and other chronic care institutions, Omnicare leverages its unparalleled clinical insight into the geriatric market along with some of the industry's most innovative technological capabilities to the benefit of its long-term care customers. Omnicare also provides key commercialization services for the bio-pharmaceutical industry and end-of-life disease management through its Specialty Care Group. For more information, visit www.omnicare.com.
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Patrick C. Lee
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Source: Omnicare via Thomson Reuters ONE