McKesson Corporation said Thursday it completed its acquisition of US Oncology, an integrated oncology company serving one of the country's largest networks of community-based oncologists.

The total transaction was approximately $2.2 billion, "including the assumption or repayment of the outstanding debt of US Oncology and its subsidiaries," McKesson said in a statement. The cash consideration paid by McKesson at closing was about $415 million.

McKesson initially announced its intention to buy US Oncology from Welsh Carson Anderson & Stowe, a New York private equity firm, in November.
Bruce Broussard, CEO of US Oncology will head the combined business, which will be headquartered in Woodlands, Texas. Broussard will report to Paul Julian, McKesson's executive vice president and group president.

"Today marks a significant milestone in our vision for advancing the success of community oncology," John H. Hammergren, McKesson's chairman and CEO, said in prepared remarks. "We are pleased to welcome US Oncology's customers and employees to McKesson. The unified organization will provide oncology practices with access to a robust suite of business, clinical and supply-chain solutions that will help enhance the health and vitality of community-based oncology and improve the quality and cost-effectiveness of patient care."

The acquisition enables McKesson to broaden its offerings to community oncologists, including pharmaceutical distribution, reimbursement, research and clinical services.

In morning trading, San Francisco, Calif.-based McKesson's stock sold at $70.92 per share, up from a previous close of $70.60 per share.

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