McKesson Corp. (MCK) revealed Thursday a pair of acquisitions that will grow its oncology business. The company said Feb. 24 it would acquire Oak Hill Capital Partners-backed Vantage Oncology LLC and privately held Biologics Inc. for a combined $1.2 billion. The healthcare services and information technology giant will fund the acquisitions with a combination of cash and incremental debt, the San Francisco-based buyer said in a Feb. 25 announcement. The transactions are anticipated to close in McKesson's fiscal 2017 first quarter, pending regulatory approvals and other customary closing conditions. The M&A choice of cancer care services provider Vantage Oncology and oncology pharmacy Biologics, both of which will be rolled into McKesson's specialty health business, were well-received by at least some company followers. 'Given its healthy free cash flow, these are the exact moves that MCK should be pursuing to increase shareholder value,' wrote FBR & Co. analyst Steven Halper in a Thursday note.
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