Cencora Acquires Retina Care Practice Network For $4.6 Billion, Boosts Dividend On Better Than Expected Q4 Earnings

On Wednesday, Cencora, Inc.’s COR fourth-quarter 2024 sales increased 14.7% to $79.1 billion, beating the consensus of $77.65 billion.  

The sales jump reflects a 15.7% increase in revenue within U.S. Healthcare Solutions and a 5.5% increase in revenue within International Healthcare Solutions.

The company reported adjusted EPS of $3.34, up 16.8% year over year, beating the consensus of $3.22.

Also Read: Opioid Settlement: Drug Distributors McKesson, Cencora, Cardinal Health To Pay $300M To Health Insurers

Concurrently, Cencora agreed to acquire Retina Consultants of America, a management services organization (MSO) of retina specialists, from Webster Equity Partners for $4.6 billion.

The Retina Consultants of America deal will add nearly 300 retina specialists to Cencora’s portfolio of physician management services.

Retina Consultants of America’s affiliated practices, physicians and management will retain a minority interest in Retina Consultants of America, with Cencora holding approximately 85% ownership in Retina Consultants of America upon closing.

Retina Consultants of America is a network of retina practices. The retina specialists and surgeons provide advanced care for macular degeneration, diabetic retinopathy, geographic atrophy, and among others.

Additionally, Cencora will potentially pay up to $500 million in aggregate contingent consideration in fiscal years 2027 and 2028, subject to the successful completion of certain predefined business objectives.

Dividend: Cencora announced a quarterly dividend of $0.55 per share, up 8% from $0.51, payable November 29, to stockholders of record at the close of business on November 15. 

Guidance: Cencora expects fiscal year 2025 adjusted EPS of $14.80-$15.10 compared to consensus of $13.64.

The company forecasts revenue growth of 7%-9%, with adjusted operating income growth of 5%-6.5%.

Cencora’s fiscal 2025 guidance does not currently include the impact of the Retina Consultants of America acquisition.

Price Action: COR stock is up 4.13% at $243.66 at last check Wednesday.

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