M&A · Healthcare · Services-Health Services
CVS Health Corp to acquire Oak Street Health, Inc.
Announced Feb 8, 2023 · Closed May 2, 2023
Deal value$10.60BEV $10.60B
Premium73.0%To unaffected price
EV / Adj. EBITDA—
ConsiderationAll cash$39.00 per share
Transaction
- Acquirer
- CVS Health Corp (CVS)
- Target
- Oak Street Health, Inc. (OSH)
- Buyer type
- Strategic
- Offer price per share
- $39.00
- Enterprise value
- $10.60B
- Status
- Closed May 2, 2023
Deal protections
- Break fee (target pays)
- —
- Reverse fee (buyer pays)
- $500M · 4.7%
- Go-shop
- No-shop
- Financing
- No financing condition
Advisors
- To the acquirer
- Credit Suisse, Lazard
- To the target
- Centerview
- Centerview fee
- $79.3M
Sector context · Healthcare
- Comparable deals
- 76 in the prior 24 months
- Premium
- 73.0% vs. 47.3% sector median
- EV / Adj. EBITDA
- Sector median 20.4x
- Break fee
- Sector median 3.4%
Timeline
- AnnouncedFeb 8, 2023
- Proxy filedMar 9, 2023
- Definitive proxyMar 30, 2023
- Shareholder voteApr 28, 2023
- ClosedMay 2, 2023
Valuation · fairness opinions
Trading comparables$21.50$26.50
Precedent transactions$23.70$40.00
Discounted cash flow$29.50$48.30
Future share price$33.70$45.20
Analyst price targets$22.00$43.00
Offer $39.00
Implied value per Oak Street Health, Inc. share by analysis, from Centerview · DCF discount rate 11.25%–13.5%.