McKesson to buy controlling stake in Florida Cancer Specialists’ unit for about $2.5 billion By Reuters

(Reuters) -Drug distributor McKesson (NYSE:) said on Monday it would buy a controlling stake in community cancer center Florida Cancer Specialists & Research Institute’s (FCS) business and administrative services unit for $2.49 billion in cash.

McKesson would own roughly a 70% stake in the unit, Core Ventures, which manages non-clinical administrative functions such as providing operational and advisory support services to FCS clinics across Florida.

The drug wholesaler has been looking to diversify its specialty services through which it distributes branded, specialty and generic drugs and provide physician management services.

Bloomberg News had reported last month that McKesson and rival drug distributors Cencora and Cardinal Health (NYSE:) were vying to buy FCS.

Shares of Cencora fell 1.4% to $234.52 in early trading.

Community-based oncology represents a “continued strategic focus and investment area” for distributors, Evercore ISI analyst Elizabeth Anderson had written in a note ahead of the announcement of the transaction.

FCS formed Core Ventures earlier this year to partner with distributors to deal with increasing drug shortages and price increases.

Upon the close of the transaction, FCS would remain independently owned and join McKesson’s network of independent, community-based cancer care centers.

FCS operates in nearly 100 locations across Florida, with more than 250 physicians and 280 nurses and physician assistants.