Cencora to acquire Retina Consultants of America for $4.6B in cash

Cencora (COR) announced that it has entered into a definitive agreement to acquire Retina Consultants of America, a management services organization of retina specialists, from Webster Equity Partners. Cencora will acquire RCA for approximately $4.6B in cash, subject to a customary working capital and net-debt adjustment. RCA’s affiliated practices, physicians and management will retain a minority interest in RCA, with Cencora holding approximately 85% ownership in RCA upon closing. Additionally, Cencora will potentially pay up to $500M in aggregate contingent consideration in fiscal year 2027 and fiscal year 2028, subject to the successful completion of certain predefined business objectives. The transaction is subject to the satisfaction of customary closing conditions, including receipt of required regulatory approvals. Upon closing, the acquisition of RCA is expected to be approximately 35c accretive, net of estimated financing costs, to Cencora’s adjusted diluted EPS for its first twelve months. Cencora plans to fund the transaction through a combination of existing cash on hand and new debt financing. Cencora’s fiscal year 2025 guidance does not currently include the impact of the RCA acquisition, which will be incorporated into expectations following the transaction close.