CVS Caremark Corp. hopes to double the size of its own Medicare Part D prescription drug business by acquiring the Medicare Part D business of Universal American Corp.
CVS Caremark, Woonsocket, R.I. (NYSE:CVS), has negotiated a buyout agreement that calls for it to acquire all of the outstanding stock of Universal American, Rye Brook, N.Y. (NYSE:UAC).
CVS Caremark would keep the Universal American Medicare Part D business, then give the Universal American shareholders 100% of the shares of "NewCo," a newly formed public company, that would hold all other Universal American operations.
"NewCo" would emerge owning the Universal American Medicare Advantage and insurance businesses, with "substantially the same management" that Universal American now has.
CVS Caremark now has about 1.2 million Medicare drug plan enrollees; Universal American has about 1.9 million Medicare drug plan enrollees.
CVS Caremark says the base price it expects to pay for
