CVS to purchase Chicago-based Oak Street Health
CHICAGO (CBS) -- CVS is branching further into health care by purchasing Chicago-based Oak Street Health.
The drugstore chain announced the acquisition on Wednesday – pending approval from regulators. The cash deal is worth $10.6 billion, and will be an all-cash transaction at $39 per share.
Oak Street Health is a primary care company with around 600 providers across 21 states. Around 20 of the clinics are in the Chicago area.
CVS claims the acquisition will reduce costs and improve outcomes for patients.
"This agreement with CVS Health will accelerate our ability to deliver on our mission and continue improving health outcomes, lowering medical costs, and providing a better patient experience while offering significant value to our shareholders," said Oak Street Health chief executive officer Mike Pykosz said in a news release. "Together with CVS Health, we will have access to greater resources and capabilities to expand the reach of our platform, provide more opportunities for our teammates and, most importantly, make a meaningful difference in the lives of the patients we serve."
Pykosz will continue to lead Oak Street Health after the close of the transaction.