Conshohocken’s Cencora is reshaping its business with a $3.5 billion deal involving its animal health division, writes John George for The Philadelphia Business Journal.
The wholesale drug distributor announced it will combine MWI Animal Health with Maine-based Covetrus, creating a newly merged company focused exclusively on animal health technology and distribution. In return, Cencora will receive $1.25 billion in cash, $800 million in preferred equity and $1.45 billion in common equity, giving it a 34.3 percent non-controlling stake in the new entity.
Company leaders say the move allows Cencora to sharpen its focus on specialty pharmaceuticals. The company recently acquired full control of OneOncology for nearly $5 billion and has pledged to invest $1 billion by 2030 to expand its pharmaceutical network.
While MWI Animal Health has been part of Cencora since a $2.5 billion acquisition in 2015, the division has been grouped under “other” revenue in company reports. Overall, Cencora generated $321.3 billion in revenue in its most recent fiscal year.
The transaction positions the animal health business for dedicated growth while allowing Cencora to channel resources into its core priorities.
To learn more about Cencora and the merger of its MWI Animal Health with Covetrus, visit The Philadelphia Business Journal.
