McKesson has signed a definitive agreement for a $2.5 billion controlling stake in a subsidiary of Florida Cancer Specialists & Research Institute, a physician-owned oncology clinic operator.
McKesson is seeking a controlling interest in Community Oncology Revitalization Enterprise Ventures, known as Core Ventures. The business and administrative services organization is a subsidiary of Florida Cancer Specialists & Research Institute, which includes 250 physicians and nearly 100 locations throughout Florida.
The controlling interest for approximately $2.49 billion in cash will represent approximately 70% ownership. FCS physicians will retain a minority interest in Core Ventures.
Once the deal is complete, Core Ventures will be part of McKesson's Oncology platform with financial results reported within McKesson's US Pharmaceutical segment. Meanwhile, Fort Myers, Fla.-based FCS will continue as an independently owned entity and will become part of McKesson's US Oncology Network.
McKesson CEO Brian Tyler called the proposed acquisition an important step for the company's efforts to advance community-based oncology care.
"FCS and Core Ventures' expertise and patient-first approach align with our commitment to accelerating clinical development, improving patient outcomes, and expanding access to quality cancer care in the community," Mr. Tyler said in a prepared statement. "We are also pleased to welcome Florida Cancer Specialists & Research Institute to The US Oncology Network, reinforcing our dedication to empowering community-based providers to independently thrive in today's rapidly evolving healthcare landscape."
In July, Bloomberg reported that several publicly traded drug distributors were expressing interest in FCS, according to insider sources. Among the firms indicating interest were Cencora and Cardinal Health. However, neither the potential buyers nor FCS confirmed these reports. On Aug. 23, Bloomberg updated that McKesson emerged as the sole contender for the stake, shortly before the companies officially announced the proposed deal Aug. 26.