• McKesson to acquire Vantage Oncology and Biologics in two transactions totaling $1.2 billion.
• Vantage is a leading national provider of radiation oncology, medical oncology and other value-based integrated cancer care.
• Biologics is the largest independent oncology-focused specialty pharmacy in the United States.
• These acquisitions enhance McKesson Specialty Health’s services to patients, providers, payers and manufacturers.
• McKesson expects the combined impact of these transactions to be approximately 11 cents accretive to adjusted earnings per diluted share in Fiscal 2017.

McKesson Corporation (NYSE:MCK), a leading international healthcare services and information technology company, announced today that it has signed definitive agreements to purchase Vantage Oncology, LLC, a leading national provider of radiation oncology, medical oncology and integrated cancer care, and Biologics, Inc., an oncology pharmacy services company.

The combined transactions, valued at $1.2 billion, will be funded by a mix of cash and incremental debt and are expected to close in the first quarter of Fiscal 2017, subject to customary closing conditions, including necessary regulatory clearances. Following the close of the transactions, both Vantage and Biologics will become part of McKesson’s Specialty Health business.

McKesson expects the combined impact of these transactions to be approximately 11 cents accretive to adjusted earnings per diluted share in Fiscal 2017.

Collectively, these acquisitions will increase McKesson’s specialty pharmaceutical distribution scale, oncology-focused pharmacy offerings, solutions for manufacturers and payers, and scope of community-based oncology and practice management services available to providers and patients.

“McKesson is committed to the success of our community oncology partners and customers and we believe the acquisitions of Vantage and Biologics complement our holistic approach to providing best–in-class care for oncology patients,” said John Hammergren, chairman and chief executive officer, McKesson Corporation. “These investments will broaden McKesson’s practice management services and solutions that allow oncologists to focus on providing excellent patient care and provide additional support solutions that enhance care delivery for patients. We will also be able to offer additional value-added services to our manufacturer partners, expand our reach and pharmaceutical distribution scale, and provide care management and care coordination for payers as the industry moves towards value-based reimbursement models,” concluded Hammergren.

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