Boston, MA 05/23/2014 (wallstreetpr) – As per Reuters, a Brazilian drugstore, DPSP, has rebuffed the bid offer that CVS Caremark Corporation (NYSE:CVS) had made to acquire it. Citing a news magazine Exame, Reuters reported that CVS had offered as much as $2 billion ($4.5 billion reais) to buy out the company.
DPSP Turns Down $2B Bid
CVS Caremark Corporation (NYSE:CVS) has engaged the services of Patria Investimentos to advise about the deal, while DPSP has hired Morgan Stanley to assess and provide guidance in the talks. This is not the first time when CVS is eyeing its acquisitions in Brazil, as last year, the company had bought the country’s eighth largest drugstore, Drogaria as its first investment into the international venture. Since the last few years, the Brazil’s pharmaceutical sector has witnessed a surge in mergers and acquisitions as the middle-income group people are growing in the nation. DPSP, which consists of Pacheco and Drogaria Sao Paulo chains, is the third largest drugstore in Brazil. At present, DPSP has 840 stores across 80 cities and is positioned next to Raia Drogasil and Brasil Pharma. In the meanwhile, CVS and DPSP declined to comment on the report.
First-Quarter Results
Earlier this month, CVS Caremark Corporation (NYSE:CVS) had reported its first quarterly results, where it posted an EPS on a diluted basis of $1.02 per share on revenues of $32.7 billion. That came in higher than the EPS of $0.83 reported in the previous year on revenue of $30.76 billion. The market consensus for the first quarter earnings were at $1.04 per share on revenues of 32.31 billion. The company reiterated its full year guidance for the year 2014 with projecting EPS to come in the range of $4.36-$4.50 per share, which includes $4 billion share buyback as well. The analysts estimate full year EPS at $4.47 per share on revenue of $132.88 billion.
