One quarter doesn't determine the success of a deal, but quarterly earnings reports do offer a chance to check up on how various acquisitions have fared since they closed. The headliner for this quarter would have to be last year's pharmacy chain merger
of equals between CVS Corp. and Caremark Rx Inc., which created CVS
Caremark Inc. Their fourth-quarter net
earnings
almost doubled compared to '06 numbers: from $417.2 million to $815
million. CEO Tom Ryan hails the deal as a
"transformational merger" that allowed them to create a differentiated
position in the marketplace, which in turn enabled them to reduce the
costs and complexities of healthcare for payors and consumers. Also:
- Pittsburgh-based electrical and industrial equipment distributor Wesco International Inc. reported a boost in fourth-quarter earnings, due in part to acquisitions, including the purchase of Communications Supply Corp. for about $525 million.
- Vodafone Group plc's revenue is up 16% on acquisitions in India and Turkey.
- IntercontinentalExchange Inc. reported record revenues for fourth quarter 2007. The acquisition of New York Board of Trade helped give it a 32% net income boost.
There are many quarters to come before the verdict is really in on these, especially the huge CVS-Caremark deal. It's nice to get off to a good start, though. -
Baz Hiralal
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Juergen Lasowski
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