McKesson to buy Canadian drug store chain Rexall Health for $2.2bn
McKesson has agreed to acquire Canadian pharmacy drug store chain Rexall Health from Katz Group for C$3bn ($2.2bn).
Rexall Health employs over 8,600 people in over 470 pharmacies throughout Canada. The company also operates Rexall Specialty Pharmacy, a division which offers clinical care and complex medication management services in transitional care settings.
Upon completion, the acquisition will improve McKesson’s retail pharmacy capabilities and procurement scale.
It will increase McKesson Canada’s headcount to 13,000 employees, serving customers and patients throughout the country.
Rexall Health will help McKesson use its existing portfolio of assets to drive growth across the total value chain, particularly in Ontario and Western Canada.
The operations of Rexall Health will be part of McKesson’s Distribution Solutions segment, reporting to Paul Julian, executive vice president and group president.
Rexall Health will continue to have a management team in Canada led by its CEO Jürgen Schreiber, and retain the existing brand.
McKesson chairman and CEO John Hammergren said: “The acquisition of Rexall Health supports McKesson’s commitment to drive value in the industry by improving healthcare solutions delivered in the pharmacy; it enhances our ability to provide best-in-class pharmacy care through an expanded retail footprint for patients across Canada.”
The deal follows McKesson’s recent transactions totaling $1.2bn to acquire two privately held cancer care companies, Vantage Oncology and Biologics.
McKesson distributes pharmaceuticals at a retail sale level and offers health information technology and care management tools.