McKesson Corp. (MCK) said it will buy privately held
oncology-services company US Oncology Inc. in a deal valued at
about $2.16 billion, including the assumption of debt.
Cancer fighting is one of the biggest growth segments in the
broader health care industry.
McKesson--the nation's biggest distributor of pharmaceutical
products--and US Oncology have targeted a closing date by Dec. 31,
and in connection with the deal, they expect substantially all of
US Oncology's debt will be either repaid or refinanced.
The deal isn't expected to have an effect on McKesson's bottom
line this fiscal year, which ends in March, but boost profit in the
coming year.
Buying US Oncology should allow McKesson to help determine the
most effective treatments for a patient.
Last week, McKesson said its fiscal second-quarter profit jumped
8.6% as the company's revenue increased, though the bottom line was
skewed by items such as write-downs.
Shares of McKesson closed at $65.98 on Friday and were inactive
premarket. The stock has risen 5.6% so far this year.
-By Nathan Becker, Dow Jones Newswires; 212-416-2855; nathan.becker@dowjones.com
