McKesson acquires FCS unit in $2.49bn deal

BY Fraser Tennant

In a transaction that enhances its integrated oncology platform, healthcare company McKesson is to acquire a controlling stake in community cancer centre Florida Cancer Specialists & Research Institute’s (FCS) business and administrative services unit for $2.49bn in cash.

Under the terms of the definitive agreement, McKesson will own an approximate 70 percent stake in the unit, Core Ventures, which manages non-clinical administrative functions such as providing operational and advisory support services to FCS clinics. FCS physicians will continue to retain a minority interest in Core Ventures.

Dedicated to advancing health outcomes for patients everywhere, McKesson’s teams partner with biopharma companies, care providers, pharmacies, manufacturers, governments and others to deliver insights, products and services to help make quality care more accessible and affordable. 

Following the close of the transaction, FCS, a practice with more than 250 physicians and 280 advanced practice providers, across nearly 100 locations in Florida, will remain independently owned and FCS will join McKesson’s The US Oncology Network, a leading oncology organisation, dedicated to advancing local and affordable cancer care and better patient outcomes.

“This acquisition marks an important step forward in our efforts to advance community-based oncology care,” said Brian Tyler, chief executive of McKesson. “By growing our oncology platform, we will bring advanced treatments and improved care experiences to patients, while also reducing the overall cost of care.

“FCS and Core Ventures’ expertise and patient-first approach align with our commitment to accelerating clinical development, improving patient outcomes and expanding access to quality cancer care in the community,” he continued. We are also pleased to welcome FCS to The US Oncology Network, reinforcing our dedication to empowering community-based providers to independently thrive in today’s rapidly evolving healthcare landscape.”

The transaction is subject to customary closing conditions, including necessary regulatory clearances.

Lucio N. Gordan, president and managing physician at FCS, concluded: “Our patients are the true beneficiaries of this transaction as we seek to drive meaningful outcomes and deliver sustained value with every interaction. Through the power of our combined operational expertise, we can bolster community oncology's role in increasing access to high-quality, affordable care.”

News: McKesson to buy controlling stake in Florida Cancer Specialists' unit for about $2.5 billion

J&J to acquire V-Wave

BY Richard Summerfield

Johnson and Johnson (J&J) has agreed to buy heart failure implant company V-Wave in a deal worth a potential $1.7bn.

According to J&J, the acquisition will extend its position as a leader in addressing cardiovascular disease. V-Wave develops cardiovascular implant technology that specifically targets heart failure with reduced ejection fraction.

Under the terms of the deal, J&J will acquire V-Wave for $600m upfront, with potential payments of up to $1.1bn contingent on regulatory and commercial milestones. V-Wave will join J&J as part of its MedTech division, the company said, with financials reported as part of its cardiovascular portfolio. Michael Bodner, group president, heart recovery & intravascular lithotripsy, will assume responsibility for the V-Wave team upon close. J&J initially invested in V-Wave in 2016.

The deal, which is expected to close before the end of 2024, subject to necessary approvals and other closing conditions, is the latest in a succession of acquisitions agreed by J&J as it attempts to drive growth beyond 2025. In April, the company agreed a $13.1bn deal to acquire Shockwave Medical. In 2023, J&J acquired miniature heart pump maker Abiomed, for $16.6bn, and paid $400m for cardiac implant developer Laminar.

J&J expects the acquisiton of V-Wave to dilute adjusted earnings per share by approximately $0.24 in 2024 and approximately $0.06 in 2025.

“We are excited to welcome V-Wave to Johnson & Johnson MedTech and to take another meaningful step toward transforming the standard of care for cardiovascular disease,” said Tim Schmid, executive vice president and worldwide chairman of Johnson & Johnson MedTech. “We recognize the importance of identifying more diverse and effective treatments for heart failure, and our recent track record demonstrates our focus on accelerating our impact on the most urgent and pressing unmet needs. We know V-Wave well, with our relationship dating back to our original investment in the company in 2016, and we have a deep understanding of the technology and science, as well as the company’s commitment to patients.”

“At V-Wave, we are dedicated to achieving our vision to help patients around the world – and we know Johnson & Johnson MedTech shares this mission,” said Neal Eigler, chief executive of V-Wave. “We are confident that Johnson & Johnson MedTech is well-positioned to ensure V-Wave’s breakthrough ideas and technology reach patients in need as quickly and effectively as possible.

“We look forward to continuing to build a world where cardiovascular disease is prevented, treated, and cured,” he added.

News: J&J to buy medical device maker V-Wave for up to $1.7 bln

Mars acquires Kellanova in $36bn mega deal

BY Fraser Tennant

In what is 2024’s biggest announced deal to date, US multinational manufacturer of confectionery Mars is to acquire food manufacturing company Kellanova – a transaction that unites two businesses with complementary footprints and brand portfolios.

Under the terms of the definitive agreement, Mars will acquire Kellanova for $83.50 per share, for a total consideration of $35.9bn, including assumed net leverage. Mars intends to fully finance the acquisition through a combination of cash-on-hand and new debt, for which commitments have been secured.

All of Kellanova’s brands, assets and operations, including its snacking brands, portfolio of international cereal and noodles, North American plant-based foods and frozen breakfast, are included in the transaction.

“This is a truly historic combination with a compelling cultural and strategic fit,” said Steve Cahillane, chairman, president and chief executive of Kellanova. “Kellanova has been on a transformation journey to become the world’s best snacking company, and this opportunity to join Mars enables us to accelerate the realisation of our full potential and our vision.

“The transaction maximises shareholder value through an all-cash transaction at an attractive purchase price and creates new and exciting opportunities for our employees, customers and suppliers,” he continued. “We are excited for Kellanova’s next chapter as part of Mars, which will bring together both companies’ world-class talent and capabilities and our shared commitment to helping our communities thrive.”

The transaction has been unanimously approved by the board of directors of Kellanova.

“In welcoming Kellanova’s portfolio of growing global brands, we have a substantial opportunity for Mars to further develop a sustainable snacking business that is fit for the future,” said Poul Weihrauch, chief executive of Mars, Incorporated. “We will honour the heritage and innovation behind Kellanova’s incredible snacking and food brands while combining our respective strengths to deliver more choice and innovation to consumers and customers.”

The transaction is subject to Kellanova shareholder approval and other customary closing conditions, including regulatory approvals, and is expected to close within the first half of 2025.

Mr Cahillane concluded: “With a proven track record of successfully and sustainably nurturing and growing acquired businesses, we are confident Mars is a natural home for the Kellanova brands and its employees.”

News: Mars to buy Pringles maker Kellanova for $36 bln in 2024's biggest deal

Algonquin to sell renewable energy unit in $2.5bn deal

BY Richard Summerfield

LS Power has announced it is to acquire Algonquin Power & Utilities Corp’s renewable energy business in a deal worth around $2.5bn.

The transaction is expected close in Q4 2024 or Q1 2025, subject to the satisfaction of customary closing conditions, including the approval of the US Federal Energy Regulatory Commission, and approval under applicable competition laws.

The acquisition of LS Power is intended to help Algonquin reduce its debt and boost its earnings. The company had long-term debt of about $8.3bn at the end of June, following a series of acquisitions in recent years.

Under the terms of the deal, LS Power will acquire more than 3GW of operating renewable energy assets, along with another 8GW of projects under development. Around 2700MW of the portfolio’s operating assets are located in the US, across the NYISO, MISO, PJM, ERCOT and CAISO markets. The remaining 300MW of generation assets are located in Canada. Algonquin is the parent company of Liberty Utilities, which provides electricity, water, and natural gas utility services to more than 1 million customers.

According to LS Power, wind and solar projects comprise the bulk of the acquisition, which includes 44 operating sites. The development pipeline includes solar, wind, battery energy storage, and renewable natural gas projects in various stages of development.

“We are pleased to announce this important transaction with LS Power, which is the result of a highly competitive strategic sale process,” said Chris Huskilson, chief executive of Algonquin. “This major milestone, coupled with our previously announced agreement to support the sale of our Atlantica shares, delivers on our plan to transform AQN into a pure play regulated utility, optimize our regulated business activities, strengthen our balance sheet, and enhance our quality of earnings. We are confident that our path towards a pure play regulated utility supports our objective to create long term value for our customers and shareholders.

“The renewable energy business is a compelling and competitive business with scale and strong assets,” he continued. “That strength is a direct result of our employees’ hard work and dedication over the last three-plus decades, and I want to thank them for being an integral part of that effort. AQN and LS Power will work closely together to ensure a smooth transition.”

“This represents a significant strategic investment in and expansion of LS Power’s renewable energy portfolio,” said Paul Segal, chief executive of LS Power. “This business complements our existing fleet of more than 19,000MW of top-performing renewable, energy storage, flexible gas and renewable fuels projects. We believe this platform will play a significant role in meeting the challenges of rising electric demand and advancing the energy transition.”

News: Algonquin to sell majority of renewables unit for up to $2.5 bln to ease debt

Carlsberg to acquire Britvic in $4.2bn deal

BY Richard Summerfield

Danish brewer Carlsberg has agreed to buy UK soft drinks maker Britvic in a deal worth around $4.2bn.

Following two unsuccessful attempts to acquire the company in June, which Britvic said significantly undervalued it, Carlsberg returned with a sweetened bid of 1315 pence per share – comprising cash and a special dividend of 25 pence a share. The rejected bids priced shares at 1200p and then at 1250p apiece.

Carlsberg expects the deal to deliver a number of benefits, including cost and efficiency savings worth $128m over five years, thanks to common procurement, production and distribution networks. Carlsberg plans to name the new beverage business Carlsberg Britvic.

The deal will also expand Carlsberg’s existing relationship with PepsiCo. Britvic bottles PepsiCo drinks in the UK and Ireland while Carlsberg bottles products for the US giant in other countries such as Norway and Sweden. To facilitate the acquisition of Britvic, PepsiCo agreed to waive a change-of-control clause in its contract with the UK firm.

“Britvic is an outstanding business with a strong heritage built on its portfolio of family-favourite brands, long-standing customer relationships, a well-invested supply chain infrastructure and a fantastic team of people across multiple markets,” said Ian Durant, non-executive chair of Britvic. “All these factors have supported a consistent track record of delivery for Britvic’s stakeholders over a sustained period of time.

“The proposed transaction creates an enlarged international group that is well-placed to capture the growth opportunities in multiple drinks sectors,” he continued. “Crucially, to remain competitive at a time when the market is being shaped by the trend of increasing consolidation among bottling partners, Carlsberg’s agreement with PepsiCo provides the combined group with a strong platform for continued success.”

“With this transaction, we are combining Britvic’s high-quality soft drinks portfolio with Carlsberg’s strong beer portfolio and route-to-market capabilities, creating an enhanced proposition across the UK and markets in Western Europe,” said Jacob Aarup-Andersen, chief executive of Carlsberg. “The proposed transaction is attractive for shareholders of Carlsberg, supporting our growth ambitions and being immediately earnings accretive and value accretive in year three.

“We are committed to accelerating commercial and supply chain investments in Britvic, and we are confident that Carlsberg Britvic will become the preferred multibeverage supplier to customers in the UK with a comprehensive portfolio of market-leading brands,” he added.

“We are looking forward to building on our long-standing and successful partnerships with both Carlsberg and Britvic,” said Silviu Popovici, chief executive of PepsiCo Europe. “We believe that the combination of Carlsberg and Britvic will create even stronger sales and distribution capabilities for our winning brands in important markets. We look forward to continuing to expand the partnership into further important markets in the future.”

News: Carlsberg to buy Britvic for $4.2 billion