Cencora, Inc. (NYSE: COR) Enters Agreement to Acquire Retina Consultants of America

On November 6, 2024, Cencora, Inc. (NYSE: COR) unveiled a significant development in its operational landscape by announcing a definitive agreement to acquire Retina Midco, Inc., also known as “Retina Consultants of America” (RCA). This acquisition marks Cencora’s strategic move into the management services organization (MSO) sector focusing on retina specialists. The company shared this information as part of a Form 8-K filing with the Securities and Exchange Commission.

Under the terms of the agreement, Cencora will take over RCA for a cash consideration based on an enterprise value amounting to approximately $4.6 billion. This acquisition is subject to customary adjustments related to working capital and net-debt. Following the transaction, it is anticipated that Cencora will hold approximately 85% ownership in RCA, with RCA’s affiliated practices, physicians, and management retaining a portion of their equity in the company.

Additionally, the agreement includes provisions for potential future payments of up to $500 million in aggregate contingent consideration in fiscal years 2027 and 2028. The realization of these payments is contingent upon the successful fulfillment of specific predefined business objectives. Cencora plans to finance this transaction through a combination of available cash reserves and new debt financing. The company has secured bridge financing commitments totaling $3.3 billion to support this acquisition.

The successful completion of the acquisition is subject to customary closing conditions, including obtaining necessary regulatory approvals. Cencora shared that the transaction is expected to add approximately $0.35 accretion, net of anticipated financing costs, to its adjusted diluted earnings per share in the first twelve months post-closing.

It’s important to note that the statements contained in the Form 8-K filing included cautionary language regarding forward-looking statements. Cencora highlighted that actual results could differ from expressed or implied forward-looking statements due to various factors, such as timing uncertainties, the ability to realize expected benefits, and changes in financial conditions. The company committed to providing timely updates as necessary.

In closing, the acquisition of Retina Consultants of America represents a significant step for Cencora in expanding its presence and offerings within the specialty healthcare sector, demonstrating its commitment to strategic growth and further diversification in the healthcare industry.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Cencora’s 8K filing here.

Cencora Company Profile

Cencora, Inc sources and distributes pharmaceutical products. The company's U.S. Healthcare Solutions segment distributes pharmaceuticals, over-the-counter healthcare products, home healthcare supplies and equipment, and related services to acute care hospitals and health systems, independent and chain retail pharmacies, mail order pharmacies, medical clinics, long-term care and alternate site pharmacies, and other customers; provides pharmacy management, staffing, and other consulting services; supply management software to retail and institutional healthcare providers; packaging solutions to various institutional and retail healthcare providers; clinical trial support, product post-approval, and commercialization support services; data analytics, outcomes research, and additional services for biotechnology and pharmaceutical manufacturers; pharmaceuticals, vaccines, parasiticides, diagnostics, micro feed ingredients, and other products to the companion animal and production animal markets; and sales force services to manufacturers.