AmerisourceBergen, TPG Team Up to Buy OneOncology in $2.1B Deal

AmerisourceBergen (ABC), a global pharmaceutical services organization, and private equity firm TPG have agreed to acquire oncology practice group OneOncology from growth equity firm General Atlantic in a deal valued at $2.1 billion.

TPG will take a majority stake in Nashville-based OneOncology, while ABC is buying a minority interest for about $685 million in cash, or roughly 35% ownership. OneOncology’s affiliated practices, physicians and management team will also retain a minority interest in the company.

The transaction is expected to close by the end of September 2023.

“As we look ahead, we are excited to continue building the platform in partnership with TPG, a proven investor in the healthcare provider space, and AmerisourceBergen, a healthcare leader with significant capabilities and solutions for community oncology practices,” said Dr. Jeff Patton, Chief Executive Officer of OneOncology.

The agreement stipulates that beginning on the third anniversary of the closing TPG will have a put option under which TPG may require ABC to purchase all the other interests in the joint venture, including TPG’s interest, at a price equal to 19x OneOncology’s EBITDA.

ABC will have two one-year call options beginning on the third and fourth anniversary of the closing to purchase all the other interests in the joint venture, including TPG’s at a similar price.

The OneOncology deal is expected to contribute a few cents to adjusted profit in the first year after closing, AmerisourceBergen said.

According to OneOncology’s 2022 annual report, the company has 15 practices, 550 physicians, 940 providers and 200 corporate employees.