Date Announced: 04/02/25
Acquirer Advisors: Financial undisclosed, Davis Polk & Wardwell LLP (legal)
Target Advisors: Financial undisclosed, McDermott Will & Emery LLP and Katten Muchin Rosenman LLP (legal)
On February 4th, 2025, McKesson Corporation (NYSE: MCK), a global medical supplies wholesaler and pharmaceutical distribution company, agreed to an 80% interest in PRISM Vision Holdings, a provider of general ophthalmology and retina management for approximately $850m from Quad-C. Under the terms of the agreement, Quad-C, which has backed PRISM since 2019, will retain a minority stake (20%) in the business. The deal is expected to close in 2025, subject to regulatory approval.
Company Details (Acquirer – McKesson Corporation)
McKesson Corporation is a global leader in healthcare distribution and pharmaceutical solutions, specializing in supply chain management, specialty care, and digital health. With $280bn in annual revenue, it delivers essential medicines and medical products to pharmacies, hospitals, and providers. Led by CEO Brian Tyler, McKesson leverages technology and innovation to enhance efficiency, improve patient access, and drive advancements in healthcare delivery.
Company Details (Target – PRISM Vision)
PRISM Vision Group is a leading ophthalmology and retina care platform dedicated to advancing eye health through specialized care solutions. As a key player in vision care management, PRISM Vision partners with ophthalmologists to enhance patient outcomes through innovative treatments, clinical expertise, and operational support. With a strong focus on collaboration and technology-driven care, the company continues to set new standards in comprehensive eye care.
Deal Details and Rationale
McKesson’s $850 million acquisition of an 80% stake in PRISM Vision Group signals a calculated expansion into the specialty care market, particularly in ophthalmology and retina care, a sector experiencing strong demographic-driven growth. With an ever-aging population and increasing demand for advanced eye care treatments, the US ophthalmology market is projected to grow from a size of $31.77bn to $52.37bn through 2032 at a CAGR of 6.50%, making it an attractive area for investment.
Financially, PRISM Vision has built a strong network of ophthalmology and retina practices, positioning itself as one of the largest independent vision care platforms in the U.S. While specific financials for PRISM Vision remain undisclosed, comparable businesses in the specialty healthcare space typically generate EBITDA margins in the 15 - 20% range, with room for operational efficiency gains under McKesson’s management. Given McKesson’s $280bn in annual revenue and existing infrastructure in specialty healthcare distribution, margin expansion through synergies such as cost efficiencies, supplier consolidation, and technology/ personnel integration is highly likely.
McKesson has actively pursued specialty healthcare deals in recent years, aligning this acquisition with its broader strategy. Notably, McKesson divested its European operations in 2021 to focus on high-margin US specialty businesses, a trend further reinforced by this transaction. The move also reflects a broader industry shift where major healthcare players consolidate specialty care practices to streamline operations and improve patient access.
However, valuation and integration remain key considerations. The $850m valuation implies a high-single-digit EBITDA multiple, comparable to recent specialty care deals but slightly above traditional multi-site healthcare acquisitions. For instance, though on a smaller scale, Optum’s $236mn acquisition of Atrius Health in 2023 saw a similar premium, justified by synergies and consolidation benefits. McKesson must now integrate PRISM Vision’s physician-led model into its broader healthcare network without disrupting practice autonomy, a challenge that has impacted past specialty healthcare roll-ups.
Despite the potential risks in integration, this acquisition represents a well-timed strategic move into an expanding, high-growth healthcare segment. If McKesson successfully leverages its distribution scale, enhances operational efficiencies, and aligns PRISM Vision’s clinical model with its specialty healthcare framework, the deal could drive long-term profitability and strengthen McKesson’s position as a leader in specialty healthcare services.
Written by: Karl Dumasia
Sources: Mergerlinks, Businesswire, Mckesson, DataBridge
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