“Today is an exciting day for Rexall Health and its employees.”
McKesson Corporation, a leading international healthcare services and information technology company, and Katz Group, one of Canada’s largest privately-owned enterprises, on March 2 announced a definitive agreement to acquire Rexall Health from Katz Group for $3 billion CAD.
“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,” said John H. Hammergren, chairman and chief executive officer, McKesson Corporation, in a news release. “Canada’s healthcare environment is rapidly evolving; it is marked by a move of primary care into pharmacy and increasingly complex patient demand. With today’s announcement, McKesson will bring together the strengths and expertise of our diverse portfolio to address challenges and opportunities in delivering the very best patient care.”
Daryl Katz, Founder and Chairman of Katz Group said, “I have the utmost confidence that Rexall Health will continue to flourish under McKesson’s ownership and Jürgen Schreiber’s continued leadership. I want to thank everyone who has helped to make Rexall Health a success over the past two decades, including all of our current and former employees, our partners, and above all our customers for their loyalty and dedication. Going forward, Katz Group will continue to invest in the growth of our three other lines of business: real estate, sports & entertainment, and private and public investments.”
“Today is an exciting day for Rexall Health and its employees,” said Jürgen Schreiber, CEO, Rexall Health. “With McKesson, we will ensure Rexall Health continues to deliver the highest quality care to its patients and service to its customers.”
Like McKesson Canada, the operations of Rexall Health will be part of McKesson’s Distribution Solutions segment, reporting to Paul C. Julian, executive vice president and group president, who commented: “We are looking forward to welcoming Rexall Health, its leadership team and employees to McKesson. We share a culture of respect for patients and the employees who serve them every day.”
Rexall Health will continue to have a dedicated management team in Canada led by Jürgen Schreiber.
“For over one hundred years in Canada, McKesson has helped build a strong network of independent pharmacies,” said Alain Champagne, president, McKesson Canada. “With the acquisition of Rexall Health, McKesson will continue to deliver value-added pharmacy solutions through an expanded portfolio, while providing operational excellence to small business owners, independent pharmacists and our pharmaceutical distribution customers.”
As part of the transaction, McKesson intends to acquire Rexall Health’s business, including approximately 470 retail pharmacies. This will bring McKesson Canada’s combined pool of talent to 13,000 employees, serving customers and patients throughout the country. Rexall Health will help McKesson leverage its existing portfolio of assets to drive growth along the entire value chain, particularly in two of Canada’s fastest growing regions, Ontario and Western Canada.
The acquisition, which will be funded by a mix of cash and debt, is expected to close late in calendar year 2016. The transaction is subject to review under the Investment Canada Act and by the Competition Bureau of Canada.