McKesson to acquire US Oncology

McKesson Corp., a healthcare information technology company and pharmaceutical distributor, has reached a $2.2 billion deal to acquire US Oncology, according to a news release from the companies.

The deal would expand McKesson's market share in specialty product distribution, noted Garen Sarafian, an analyst for Citigroup, in a comment. The comment included the disclosure that McKesson was a noninvestment banking client. McKesson lags AmerisourceBergen Corp. in the rapidly growing segment, Sarafian said.

Under the cash deal, which is expected to close by year-end, US Oncology Chairman and CEO and Bruce Broussard will head McKesson's specialty-care solutions operations, to be headquartered in Woodlands, Texas, where US Oncology is based, according to the release.

McKesson, a publicly traded company based in San Francisco, is expected to repay or refinance US Oncology's outstanding debt, according to the release. McKesson reported net income of $1.3 billion on revenue of $108.7 billion for fiscal 2010, which ended in March, the company's Securities and Exchange Commission filing shows. McKesson acquired regional drug distributor McQueary Bros. for about $190 million in 2008 and OTN, a specialty drug distributor, for about $519 million, in 2007, the SEC filings show.