Dive Brief:
- Cencora is acquiring a majority stake in OneOncology, a support platform for cancer care practices, for $5 billion as the drug distributor ramps up its specialty services offerings.
- Cencora already owned a stake in OneOncology, but has signed a definitive agreement to acquire most of the remaining shares from investment firm TPG and other holders for $3.6 billion, and to pay off $1.3 billion of OneOncology’s debt.
- OneOncology’s practices will retain a minority interest in the company, according to a release. Cencora expects deal to close by the second fiscal quarter next year.
Dive Insight:
Analysts said they view the deal favorably, given the potential for synergies between OneOncology and its other management services offerings. Cencora has recently invested in boosting its services for specialty providers, banking that providing clinical support tools will drive access to drugs in high-margin areas like oncology, helping its core distribution business.
It’s Cencora’s second acquisition of a majority stake in a specialty support business this year. In January, the drug distributor spent $4.4 billion on a majority interest in Retina Consultants of America, a management services organization for retina care.
“We look forward to building on both platforms’ research and clinical trial capabilities, advanced technology resources and strong physician leadership to drive unique value to our stakeholders,” Cencora CEO Bob Mauch said in a statement on the OneOncology deal on Monday.
Cencora expects the acquisition of OneOncology to be neutral to its adjusted diluted earnings in the first year following its close, so it reiterated its financial guidance for 2026. However, Cencora is pausing share repurchases in anticipation of the deal. The company told investors that its adjusted diluted earnings per share for 2026 will probably be closer to the lower end of its guidance.
Cencora did raise its long-term operating income and adjusted diluted EPS guidance to reflect future contributions from OneOncology.
