On November 1, 2006 CVS Corporation announced its merger with Caremark Rx, one of the nation’s leading pharmaceutical services companies. CVS, headquartered in Woonsocket, RI, is the largest retail pharmacy chain in the U.S. with approximately 6,200 stores in 43 states. Caremark, headquartered in Nashville, TN, operates a retail and specialty pharmacy network. It has provided hemophilia products for more than 30 years. The terms of agreement state that for every share of Caremark that shareholders own, they will receive 1.67 shares of CVS.
“This merger is a logical evolution for CVS, Caremark and the entire pharmacy industry,” said Tom Ryan, Chairman, President and CEO of CVS. “Together, CVS and Caremark will help manage the costs and complexities of the U.S. healthcare system, offering unparalleled access and driving superior healthcare outcomes, enhancing value for employers, health plans and consumers.”
The new company will be called CVS/Caremark Corporation. It will operate out of CVS’s headquarters in Rhode Island.
Source: Associated Press, November 1, 2006