Drug distributor McKesson Corp said it was buying two privately held cancer care service providers, Vantage Oncology LLC and Biologics Inc, for a total of $1.2 billion, to add muscle to its specialty health business.
McKesson’s specialty health services manages local community oncology centers, helping them improve efficiency and patient care as well as providing them with drugs and medical supplies.
Vantage Oncology provides radiation and other cancer care services, and will add more than 50 cancer centers across 13 U.S. states to McKesson’s business, the company said.
Biologics, the largest oncology-focused specialty pharmacy in the United States, will help McKesson engage its drug manufacturing customers with patients, insurers and healthcare service providers.
McKesson said the deals would be funded by a mix of cash and debt and are expected to add 11 cents to adjusted earnings in the first quarter fiscal 2017, which starts in April.