Drug Distributor Cencora to Acquire Retina Consultants of America for $4.6 Billion
Drug distributor Cencora has announced its plans to acquire Retina Consultants of America (RCA), a management services organization (MSO) of retina specialists, from Webster Equity Partners for a total of $4.6 billion. This move is aimed at expanding Cencora’s reach in the field of retinal care and strengthening its relationships with community providers.
Cencora President and CEO, Bob Mauch, expressed his excitement about the acquisition, stating that it will allow the company to leverage its operational infrastructure to enhance the provider experience, drive innovative research, and improve patient outcomes. With this acquisition, Cencora aims to broaden its MSO solutions and position itself as a leader in the field of retinal care.
Under the terms of the agreement, RCA’s affiliated practices, physicians, and management will retain a minority interest in the organization, with Cencora holding approximately 85% ownership. Additionally, Cencora has committed to paying up to $500 million in contingent consideration in fiscal years 2027 and 2028, subject to the achievement of certain business objectives.
Upon completion of the acquisition, Cencora expects the transaction to be accretive to its earnings per share by approximately $0.35 for the first twelve months. The company plans to finance the deal through a combination of existing cash reserves and new debt financing.
Impact of the Acquisition
The acquisition of RCA is expected to enhance Cencora’s capabilities in the specialty care sector and expand its MSO business. By combining forces, the two organizations aim to strengthen physician and manufacturer relationships, as well as improve their value proposition to stakeholders. Cencora plans to leverage its manufacturer services to enhance RCA’s research program and outcomes, building on RCA’s existing clinical research network and team of research professionals.
While Cencora’s fiscal year 2025 guidance does not currently account for the impact of the RCA acquisition, the company plans to incorporate it into its future financial outlook following the transaction’s closure.
The Larger Trend
In August, Walgreens Boots Alliance divested its remaining shares of Cencora for $818 million. The proceeds from the sale will be used to reduce debt and support Walgreens’ broader health services strategy focused on its retail pharmacy footprint.
Final Thoughts
CEO of RCA, Dr. Robby Grabow, expressed optimism about the acquisition, highlighting the additional resources that Cencora brings to support RCA’s growth strategy. With a focus on expanding their physician network and enhancing the quality of care, RCA is poised to continue its mission of providing exceptional care to patients.
Jeff Lagasse is the editor of Healthcare Finance News.
Email: jlagasse@himss.org
Healthcare Finance News is a HIMSS Media publication.
