Cencora has agreed to acquire Retina Consultants of America for approximately $4.6 billion in cash, as the drug distributor seeks to enhance its physician and manufacturer relationships. Retina Consultants specializes in management services for retina specialists, operating with around 300 specialists across 23 US states, providing care to over 2 million patients annually. 'Following our recent investment in OneOncology, the addition of Retina Consultants will allow us to expand our management services organization solutions,' Cencora Chief Executive Bob Mauch stated.
In Wednesday afternoon trading, Cencora's shares rose by 5.4%. 'With additional resources to support the continued execution of our growth strategy, we will be better positioned to continue expanding our physician network and enhancing the quality of care we provide,' said Retina Consultants CEO Robby Grabow.
Once the acquisition is finalized, Cencora is set to hold approximately 85% ownership in Retina Consultants, while the affiliated practices, physicians, and management will retain a minority stake in the organization. The company may pay up to $500 million in fiscal 2027 and 2028, contingent upon achieving certain performance targets. Cencora expects the acquisition to contribute roughly $0.35 to its adjusted per-share earnings for the first 12 months, net of anticipated financing costs.
In its fiscal fourth quarter, Cencora reported an adjusted EPS increase to $3.34 from $2.86 a year prior, with revenue surging 15% to $79.05 billion. Analysts surveyed by Capital IQ had estimated EPS at $3.23 and revenue at $77.72 billion. For fiscal 2025, Cencora forecasts an adjusted EPS range of $14.80 to $15.10, closely aligning with Wall Street's projection of $14.77, and anticipates adjusted revenue growth between 7% and 9%.
Additionally, the company announced an increase in its quarterly dividend to $0.55 a share from $0.51, payable on November 29 to stockholders recorded by the close of business on November 15. Price: 246.11, Change: +12.12, Percent Change: +5.18.