SAN FRANCISCO & TORONTO--(BUSINESS WIRE)--McKesson Corporation (NYSE:MCK), a leading international healthcare
services and information technology company, announced today that it has
completed the previously announced acquisition of Rexall Health for $2.9
billion CAD ($2.1 billion USD*, or approximately $1.7 billion USD*, net
of certain estimated purchase price adjustments, proceeds from store
divestitures, and tax benefits). This follows the agreement reached with
the Competition Bureau of Canada for the acquisition of Rexall Health
and approval received under the Investment Canada Act.
As part of the transaction, McKesson has acquired approximately 470
retail pharmacies, and has agreed to divest stores in 26 local markets
that the Competition Bureau of Canada identified during its review of
the transaction.
McKesson also announced today that Domenic Pilla has been appointed CEO
of McKesson Canada, effective January 3, 2017. Pilla will report to Paul
C. Julian, executive vice president and group president, McKesson
Corporation, and assume overall leadership responsibility for McKesson’s
distribution and retail businesses in Canada, including Rexall Health.
Jürgen Schreiber, currently CEO of Rexall Health, will leave to pursue
other opportunities.
“Today’s announcement marks a milestone for McKesson and Rexall Health.
With complementary assets, industry expertise, and shared values, we
will now serve our customers with enhanced retail pharmacy capabilities
and a broader reach across Canada,” said John H. Hammergren, chairman
and chief executive officer, McKesson Corporation. “Patients across
Canada will benefit from best-in-class pharmacy care through innovative
care solutions and an expanded retail footprint. We are thankful to
Daryl Katz, founder and chairman of Katz Group, one of Canada’s largest
privately-owned enterprises, for having built such a strong pharmacy
asset in the Canadian market.”
With Rexall Health, McKesson will be able to serve a broad range of
pharmaceutical care and ensure choice to consumers at a time when
Canadians are increasingly turning to pharmacies for their healthcare
advice and services.
“Together, McKesson and Rexall can leverage shared expertise to grow and
deliver better care and value to Canadians,” said Julian. “McKesson has
a strong track record of delivering leading service levels to customers
and patients.”
“Domenic Pilla is uniquely qualified to lead our expanded portfolio in
Canada based on his previous experience as president of Shoppers Drug
Mart and McKesson Canada,” Julian continued. “He brings deep knowledge
of both the wholesale and retail sides of the business, and a proven
track record of delivering results. We thank Jürgen Schreiber for his
outstanding leadership in bringing this acquisition to fruition and wish
him the greatest success.”
Rexall Health will continue to have a dedicated management team in
Canada under Pilla, while retaining the existing brand Canadians have
come to know and trust. Pilla is expected to appoint a new president of
Rexall Health in the future to provide day-to-day leadership for Rexall.
His other direct report will be Paula Keays, president of McKesson
Canada.
McKesson now expects Rexall Health to be flat to adjusted earnings per
diluted share for Fiscal 2017 as earnings attributable to Rexall Health
will be offset by an anticipated charge related to a fair value
adjustment of acquired inventory. McKesson expects the acquisition will
be 30 to 35 cents accretive to adjusted earnings per diluted share by
the third year following the close of the transaction, on a constant
currency basis.
* $1 CAD = $0.74 USD
About McKesson Corporation
McKesson Corporation, currently ranked 5th 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 McKesson Canada
Founded more than 100 years ago, McKesson Canada is dedicated to
delivering vital medicines, supplies and information technologies that
enable the healthcare industry to provide patients better, safer care.
Our solutions empower pharmacies, manufacturers, hospitals and other
healthcare institutions by enabling them to get closer to the millions
of patients they serve every single day, while contributing to the
quality and safety of care in Canada. For more information, visit www.mckesson.ca.
About Rexall Health
With a heritage dating back to 1904, Rexall Health and Rexall Health
Pharma Plus pharmacies are among the most trusted names in retail
pharmacy. Rexall Health is focused on helping Canadians feel good about
their health through easy access to a wide assortment of health and
wellness services and products. Supported by our team of over 8,400
employees in over 470 pharmacies across the country, Rexall Health is
continually evolving to enhance the customer experience. Rexall Health
also includes Medicentres Canada, a group of family healthcare clinics
in Edmonton, Calgary, London and Windsor where family physicians and
specialists provide high-quality and accessible healthcare services to
individuals and families, and Claimsecure, an industry-leading
healthcare management and technology firm that has been providing
customized, value added health benefit claims management and plan
administrative services to Canadian corporations and other health
benefit plan sponsors for over 30 years. For more information, visit www.rexall.ca.
Risk Factors
This press release includes “forward-looking statements” within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of
the 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, including the expected benefits and costs of
the transaction; any projections of earnings, revenues or other
financial items; any statements of the plans, strategies and objectives
of management for future operations; any statements regarding product or
service development, extensions or integration; any statements of
expectation or belief; any statements regarding general industry
conditions and competition; any statements regarding economic
conditions; the possibility that expected benefits may not materialize
as expected; McKesson’s ability to successfully implement integration
strategies; as well as the ability to ensure continued performance or
market growth of the products and services of Rexall Health. These
risks, uncertainties and other factors, and the general risks associated
with McKesson’s business described in the reports and other documents
filed with the Securities and Exchange Commission, could cause actual
results to differ materially from those referred to in the
forward-looking statements. All forward-looking statements are based on
information currently available to McKesson and are qualified in their
entirety by this cautionary statement. Except as required by law,
McKesson assumes no obligation to update any such forward-looking
statements or other statements included in this press release.
Shareholders are encouraged to review SEC filings and more information
about McKesson, which are located on the company’s website.
