ARTICLE | Company News

Express Scripts, Medco Health Solutions Inc. deal

July 25, 2011 7:00 AM UTC

Express Scripts will acquire fellow pharmacy benefit manager Medco in a cash and stock deal that values Medco at about $71.36 per share, or $29.1 billion. The price is a 28% premium to Medco's close of $55.78 on July 20, before the deal was announced.

Medco shareholders will receive $28.80 in cash and 0.81 shares of the combined company, which will be named Express Scripts Holding Co. and will be headquartered in St. Louis. Express Scripts shareholders will receive one share in the combined company for every Express Scripts share owned and will own about 59% of the combined company. Medco shareholders will own the remaining 41%. Express Scripts chairman, president and CEO George Paz will become chairman and CEO of the combined company, whose board will comprise Express Scripts' existing board plus two Medco directors. ...