Staying horizontal

13 April 2009 By Rob Cox Follow @rob1cox

Express Scripts lost out to CVS in the battle for Caremark. But two years down the road the drugs benefits group’s avoidance of vertical integration has been rewarded by better performance, crowned with a $4.7bn deal to acquire WellPoint s benefits business.

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US drugs benefits manager Express Scripts plans to buy WellPoint's inhouse pharmacybenefit management business for $4.7bn with a mixture of cash and up to $1.4bn in stock. Express agreed to pay WellPoint $50m if the deal is terminated.

In midday trading, shares in Express were up 11% to $54.66.

Two years ago, Express lost out on a bid to acquire another benefits manager, Caremark, which was bought buy drugstore CVS for $26bn.

The main financial adviser to Express Scripts was Citigroup, assisted by Credit Suisse and JPMorgan. Its legal adviser was Skadden, Arps, Slate Meagher & Flom.

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