McKesson to acquire majority stake in PRISM Vision for $850M

IRVING, Texas - McKesson Corporation (NYSE: NYSE:MCK), a $76 billion healthcare giant with "GREAT" financial health according to InvestingPro metrics, has entered into a definitive agreement to acquire an 80% stake in PRISM Vision Holdings, LLC, a provider of ophthalmology and retina management services, for approximately $850 million. The deal will see PRISM Vision’s physicians retain a 20% interest in the company.

The acquisition is part of McKesson’s strategy to expand its footprint in the retina and ophthalmology care sectors, building on its existing community practice and specialty solutions. With annual revenue exceeding $330 billion and strong cash flows, McKesson continues to demonstrate robust growth potential. Brian Tyler, CEO of McKesson, highlighted PRISM Vision’s strong performance and leadership in delivering superior retinal care, provider experience, and innovative clinical research capabilities. Tyler expressed excitement about leveraging McKesson’s expertise in practice management and clinical research outcomes to develop a leading retinal care platform. For detailed analysis of McKesson’s growth strategy and 12+ additional ProTips, visit InvestingPro, where you’ll find comprehensive research reports and expert insights.

PRISM Vision, with its network of over 180 providers, 91 office locations, and seven ambulatory surgery centers, will be integrated into McKesson’s U.S. Pharmaceutical (TADAWUL:2070) segment. The transaction is expected to be accretive to McKesson’s Adjusted Earnings Per Diluted Share by $0.20 to $0.30 in the first 12 months and $0.65 to $0.75 by the end of the third year post-closing. According to InvestingPro analysis, McKesson’s stock currently trades near its 52-week high, showing strong market confidence in the company’s expansion strategy.

Dr. Steven Madreperla, CEO of PRISM Vision, expressed enthusiasm for the partnership, aligning PRISM’s provider base and service delivery platform with McKesson’s care delivery expertise to expand their eye care network.

The transaction is subject to customary closing conditions, including regulatory approvals. The press release includes cautionary statements regarding forward-looking statements and potential risks and uncertainties that could affect the actual results of the acquisition.

This news is based on a press release statement from McKesson Corporation.

In other recent news, McKesson Corporation has been the center of several notable developments. Mizuho (NYSE:MFG) Securities reiterated its Neutral rating on McKesson, expressing confidence in the company’s F2H25 guidance. The firm highlighted management’s optimism in achieving accelerated EBIT growth, particularly in the Med-Surg Solutions and Prescription Technology Solutions segments.

TD Cowen, on the other hand, increased its price target on McKesson to $695, retaining a Buy rating due to strategic moves. The firm believes McKesson is well-positioned to surpass consensus forecasts for 2025, mainly due to expansion in specialty sales. McKesson’s strategic moves also include the recent sale of Rexall and Well.ca businesses, allowing the company to focus on its oncology and biopharma services.

Meanwhile, Mizuho initiated coverage on McKesson with a Neutral rating, influenced by the company’s significant expansion in its oncology platform. This expansion is expected to provide McKesson with a long-term growth rate above its peers. Lastly, Jefferies raised its price target for McKesson to $715, maintaining a Buy rating. This adjustment reflects the firm’s confidence in McKesson’s focus on Oncology and Biopharma Services as a critical growth strategy.

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