McKesson to acquire controlling stake in Core Ventures for $2.49 billion in cash

By Ciara Linnane

'This milestone marks an important step forward in our efforts to advance community-based oncology care,' says CEO

McKesson Corp. (MCK) said Monday it has agreed to acquire a controlling stake in Community Oncology Revitalization Enterprise Ventures, LLC , or Core Ventures, a business and administrative-services outfit, for about $2.49 billion in cash.

Once the deal closes, Core Ventures will become part of McKesson's oncology network, and its financial results will be included in McKesson's U.S. pharmaceuticals segment. McKesson, a drug distributor and medical-products company, will own a 70% stake in the company.

Core Ventures was set up by Florida Cancer Specialists & Research Institute, LLC, a physician-owned community oncology practice with more than 250 physicians and 280 advanced-practice providers across nearly 100 locations in Florida.

Florida Cancer Specialists & Research Institute will continue to be independently owned and will join McKesson's The U.S. Oncology Network, which seeks to advance local and affordable cancer treatment.

"This milestone marks an important step forward in our efforts to advance community-based oncology care," McKesson Chief Executive Brian Tyler said in prepared remarks.

"By growing our Oncology platform, we will bring advanced treatments and improved care experiences to patients, while also reducing the overall cost of care."

The stock was up 0.7% premarket, and has gained 19% in the year to date, while the S&P 500 has gained 18%.

-Ciara Linnane

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08-26-24 0847ET

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