SAN FRANCISCO & STUTTGART, Germany--(BUSINESS WIRE)--McKesson Corporation (NYSE:MCK) (“McKesson”), a leading North
American healthcare services and information technology company,
announced that the Stuttgart Higher Regional Court approved the
registration of the domination and profit and loss transfer agreement
between Celesio AG [ISIN DE000CLS1001] (“Celesio”), a leading
international wholesale and retail company and provider of logistics and
services to the pharmaceutical and healthcare sectors, and McKesson
Deutschland GmbH & Co. KGaA (formerly known as Dragonfly GmbH & Co. KGaA),
a wholly owned subsidiary of McKesson, earlier today. The agreement is
expected to be formally registered shortly. The registration of the
domination profit and loss transfer agreement marks a key milestone in
the acquisition of Celesio, first announced on October 24, 2013,
allowing McKesson and Celesio to operate as an integrated company.
“Today’s announcement is an important milestone and clears the path for
our companies to operate in an integrated way, creating a global leader
in pharmaceutical purchasing and distribution. With the registration of
the domination and profit and loss transfer agreement, we will bring
together the strengths and expertise of our collective organizations to
address the opportunities and needs facing our customers and business
partners around the world,” said John H. Hammergren, chairman and chief
executive officer, McKesson Corporation.
“As the needs of the healthcare industry continue to evolve, broader
global reach, channel influence, and greater purchasing scale are
increasingly important. With complementary geographic footprints, shared
values, and industry expertise across multiple markets, we will now
serve our customers as one of the largest pharmaceutical wholesalers and
providers of logistics and healthcare services in the world. Together,
we will continue to create value in the supply chain and value for our
shareholders,” added Hammergren.
Combined Company
With collectively over 360 years of operating experience, the combined
group is expected to have annual revenues in excess of $170 billion,
approximately 85,000 employees worldwide, and operations in more than 20
countries.
“Today marks an important achievement in the history of our respective
organizations. Upon registration, we will begin working together to
provide the most advanced delivery of healthcare products and services
to customers and partners around the world. Our customers will benefit
from increased supply chain efficiency, enhanced global sourcing, and a
broad array of innovative product, technology and business solutions,”
said Paul C. Julian, executive vice president and group president,
McKesson Corporation. “We remain committed to supporting Celesio and its
business leaders as they implement their strategy for growth and we are
delighted to achieve this important milestone which allows our
organizations to more closely align in the areas where we can deliver
further value for our customers and manufacturing partners.”
McKesson and Celesio serve approximately 120,000 pharmacy and hospital
locations on a daily basis in the U.S., Canada, Europe and Brazil,
including more than 12,000 pharmacies that are either owned or are part
of a strategic banner or franchise network of community pharmacies.
Leadership Team
The operations of Celesio will be part of McKesson’s Distribution
Solutions segment, led by Paul C. Julian, executive vice president and
group president, McKesson Corporation. The operations of Celesio will
continue to be led by its management board with Marc Owen as its
chairman, overseen by the Celesio Supervisory Board. Upon registration
of the domination and profit and loss transfer agreement, a newly formed
Global Procurement team will lead the combined McKesson and Celesio
strategy with our manufacturing partners across the globe.
“The corporate cultures of both McKesson and Celesio are based on
integrity, accountability, respect, and excellence, with a commitment to
always putting customers first,” said Marc Owen, Chairman of Celesio’s
Management Board. “Both organizations have built strong customer
relationships and have a deep understanding of their markets. Completing
this important milestone enables us to align our organizations more
closely in our common goal of creating additional value for our
customers and manufacturing partners. And our employees will benefit
from being part of an even stronger international company with
tremendous leadership and growth opportunities.”
Financial Expectations
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By the fourth year following the registration of the domination profit
and loss transfer agreement, McKesson expects to realize annual
synergies between $275 million and $325 million.
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McKesson currently owns approximately 76% of the outstanding shares of
Celesio.
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McKesson will continue to consolidate the financial results of Celesio.
About McKesson Corporation
McKesson Corporation, currently ranked 15th on the FORTUNE
500, is a healthcare services and information technology company
dedicated to making the business of healthcare run better. McKesson
partners with payers, hospitals, physician offices, pharmacies,
pharmaceutical companies and others across the spectrum of care to build
healthier organizations that deliver better care to patients in every
setting. McKesson helps its customers improve their financial,
operational, and clinical performance with solutions that include
pharmaceutical and medical-surgical supply management, healthcare
information technology, and business and clinical services. For more
information, visit www.mckesson.com.
About Celesio Group
Celesio is a leading international wholesale and retail company and
provider of logistics and services to the pharmaceutical and healthcare
sectors. The proactive and preventive approach ensures that patients
receive the products and support that they require for optimum care.
With some 39,000 employees, Celesio operates in 14 countries around the
world. Every day, the group serves over 2 million customers – at 2,200
pharmacies of its own and 4,300 participants in brand partnership
schemes. With 133 wholesale branches, Celesio supplies 65,000 pharmacies
and hospitals every day with up to 130,000 pharmaceutical products. The
services benefit a patient pool of about 15 million per day.
Forward-looking Statements
This press release includes “forward-looking statements” within the
meaning of Section 27A of the U.S. Securities Act of 1933 and Section
21E of the U.S. Securities Exchange Act of 1934, as amended, that are
subject to risks and uncertainties and other factors. All statements
other than statements of historical fact are statements that could be
deemed forward-looking statements. These statements do not represent
facts and may be characterized by words such as “expect”, “believe”,
“estimate”, “intend”, “aim”, “assume” or similar expressions. Such
statements express the intentions, opinions, or current expectations of
McKesson, and Celesio with respect to possible future events, e.g.,
regarding annual synergies or future financial results of McKesson or
Celesio. Such forward-looking statements are based on current plans,
estimates and forecasts which McKesson and Celesio have made to the best
of their knowledge, but which do not claim to be correct in the future.
Forward-looking statements are subject to risks and uncertainties that
are difficult to predict and generally cannot be influenced by McKesson
or Celesio. The forward-looking statements contained in this press
release could turn out to be incorrect and/or future events and
developments could considerably deviate from the forward-looking
statements contained in this press release. Subject to compliance with
applicable law and regulations, neither McKesson nor McKesson
Deutschland GmbH & Co. KGaA intend to update these forward-looking
statements or to undertake any obligation to do so.
