McKesson To Buy RxCrossroads

(RTTNews) - McKesson Corp. (MCK) Monday said it agreed to buy RxCrossroads, a provider of tailored services to pharmaceutical and biotechnology manufacturers, from CVS Health Corp. (CVS).

The deal is valued at $735 million, or about $635 million net of the present value of incremental cash tax benefits, and will be funded by cash on hand.

The acquisition is expected to close in the fourth quarter, subject to customary closing conditions, including necessary regulatory clearances.

The acquisition will enhance McKesson's existing commercialization solutions for manufacturers of branded, specialty, generic and biosimilar drugs, including comprehensive patient support services, custom pharmacy solutions and third-party logistics, allowing McKesson to grow its end-to-end offerings for manufacturers.

"McKesson's acquisition of RxCrossroads is another example of our continued focus on expanding and enhancing solutions for our biopharma manufacturer partners to deliver better patient support and better health outcomes," said John Hammergren, chairman and chief executive officer, McKesson Corporation.

RxCrossroads will become part of the company's McKesson Specialty Health business.

McKesson expects the impact of this transaction to be approximately 20 cents accretive to adjusted earnings per share by the third year following the close of the transaction.