Caremark Rx / AdvancePCS

David Marcus, Corporate Counsel

Your health care benefits may not be getting any better, but the companies administering them are growing fast. Caremark Rx, Inc., a prescription benefits manager based in Birmingham, expects to pay about $6 billion to acquire Irving, Texas¿based AdvancePCS, which offers pharmacy and health management services to health plans. 

The deal, which was at a 37 percent premium to the target's closing price on September 2, the day the acquisition was announced, will be paid 90 percent in stock and 10 percent in cash and is dependent on shareholder and regulatory approvals. Caremark shareholders would own 58 percent of the combined company. 

For acquiror Caremark RX, Inc. (Birmingham) 

In-house: 

General counsel Edward Hardin, Jr., and assistant general counsel Sara Finley. 

King & Spalding (Atlanta): 

Corporate: Randolph Coley, Alexander Gendzier, Jon Harris, Jr., William Spalding, and associates Keith Atkinson, Julia Houston, Alison Van Lear, and Tracey Zaccone. Tax: Donald Hensel. Benefits: Donald Kohla. Banking: Hector Llorens, Jr. Health care: counsel Robert Keenan III. (Coley is in Houston; Gendzier and Zaccone are in New York.) The firm has represented Caremark since 1998. 

Jones Day (Cleveland): 

Antitrust: Joe Sims, Toby Singer, Tom Smith, and associates Karen Espaldon, Bevin Newman,and Angela Pegram. (All are in the Washington, D.C., office.) 

Burke, Warren, MacKay & Serritella (Chicago): 

Corporate: John Darrow and associates Scott Cloutier, Daniel Hardwick, and Gregory Winters.Health care: Kevin Ryan. 

Morris, Nichols, Arsht & Tunnell (Wilmington): 

Andrew Johnston and A. Gilchrist Sparks III. The firm has worked on a number of Caremark matters in the past several years, all referred by King & Spalding. 

For target AdvancePCS, Inc. (Irving, Texas) 

In-house: 

General counsel Susan de Mars, corporate affairs secretary Laurie Johansen, assistant general counsel Shawn Shearer, and assistant vice president ¿ corporate affairs Kathy Tortomasi. 

Skadden, Arps, Slate, Meagher & Flom (New York): 

M&A: Richard Grossman, Paul Schnell, Neil Stronski, and associates Eric Colandrea, Daniel Ganitsky, Kenneth Koleyni, and Brandon Van Dyke. Antitrust: Clifford Aronson and associatesIan John and Jean Kim. Employee benefits and executive compensation: Neil Leff, counsel Berit Freeman, and associate Manan Shah. Tax: Katherine Bristor and counsel James Tandler.Skadden has represented the company for several years. 

Reed Smith (Pittsburgh): 

Health care: David Bloch, Elizabeth Carder-Thompson, Robert Clark, Joseph Metro, Eugene Tillman, and associates Daniel Cody, Jason Healy, Paul Varki, and Jarrell Williamson.Venture/technology: John Marlow and associates Kevin Corbett and Jeffrey Levi. Life sciences transactions: associates SueLyn Smith Athey, Stuart Kuntz, and Evan Selig. Government services:Eric Dubelier. Market trial: associate Melissa Stover. Corporate/ M&A: associate Dave Borders, Jr. (All are in Washington, D.C., except Cody, Marlow, and Borders, who are in San Francisco, and Corbett and Levi, who are in Oakland.) Reed Smith has represented AdvancePCS since 1995 on various issues.

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