Omnicare Inc. (OCR) has acquired closely held institutional pharmacy provider Continuing Care Rx as Omnicare looks to expand its business amid recent performance woes and a management changes.
Financial terms of the deal weren't disclosed.
Harrisburg, Pa.-based Continuing Care, serves more than 40,000 beds at long-term-care facilities in eight states including Florida, Illinois and Maryland. It had revenue about $170 million for the year ended June 30.
The acquisition came after an abrupt departure of Omnicare's former chief executive last month. A few days later, the provider of drugs to nursing homes and assisted-living centers reported a steep decline in its second-quarter profit and revenue decreased on lower selling volumes and fewer beds served.
Continuing Care "is an experienced, cost-effective provider of pharmaceutical services that has built a strong business over the past several years," said James Shelton, Omnicare's interim president and CEO.
Its stock closed at $19.20 Tuesday and didn't trade premarket. Shares have fallen 21% this year.
-By Jodi Xu, Dow Jones Newswires; 212-416-3037; firstname.lastname@example.org;