Drug wholesaler McKesson (NYSE:MCK) inked a deal on Monday to scoop up privately held US Oncology for $2.16 billion.
The Woodlands, Tex.-based US Oncology provides management and support services to about 500 oncology practices and radiation treatment centers.
McKesson said it sees the deal closing by the end of 2010 and being neutral to its fiscal 2011 adjusted earnings. The acquisition is expected to modestly add to McKesson’s bottom line beginning in fiscal 2012. McKesson also said it plans to repay or refinance US Oncology’s debt.
“With this acquisition, McKesson will offer a compelling suite of services and solutions to community oncologists and other partners in the rapidly evolving specialty business,” McKesson CEO John Hammergren said in a statement.
The combined McKesson Specialty Care Solutions business will be led by Bruce Broussard, the current CEO of US Oncology, and be based in The Woodlands.
“In joining McKesson, we are building the scale and expertise necessary to empower our customer base to shape the future of healthcare,” Broussard said in the statement.
Shares of McKesson rallied on the news, jumping 1.99% to $67.69, compared with a rise of 0.65% on the S&P 500. The stock has gained more than 5.5% year-to-date.