Oak Street Health Might Be Next On Radar As M&A Pick For CVS Health

Oak Street Health Inc OSH shares are trading higher as CVS Health Corp CVS is reportedly exploring an acquisition of primary care center operator.
Bloomberg News reported on Monday, citing people familiar with the matter.
The report added that no final decision has been made, and discussions could fall through.
Oak Street operated 169 centers across the U.S., providing care for more than 159,000 patients at the end of last year.
Private equity firms General Atlantic and Newlight Partners collectively own roughly 39% of the company, data compiled by Bloomberg shows.
CVS had also expressed interest in expanding into the primary care space and was reportedly among the bidders to acquire primary care provider Cano Health Inc CANO before backing out.
In September, CVS agreed to acquire Signify Health for $30.50 per share in cash, representing a total transaction value of approximately $8 billion.
At JP Morgan Healthcare Conference, Oak Street Health released preliminary 2023 guidance.
The management expects 2023 revenue of $3-$3.15 billion (compared to the $3.05 billion consensus estimate).
The forecasts adjusted EBITDA loss of $265 million to $225 million.
In addition, management expects to end 2023 with 204 centers and at-risk members between 205,000-210,000.
The management also narrowed its 2022 guidance, with revenue to come in north of $2.155 billion, with adjusted EBITDA loss to be greater than $287.5 million (down from the previous guidance of $(292.5)-$(287.5) million).
Price Action: OSH shares are up 36.90% at $30.90 during the premarket session on the last check Tuesday.

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Oak Street Health Might Be Next On Radar As M&A Pick For CVS Health

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