"We are extremely pleased to announce the execution of an agreement to add the pharmaceutical distribution business and other healthcare assets of UDG to McKesson’s European business. At McKesson, we are committed to providing our customers with more efficient delivery of healthcare products and services globally."
SAN FRANCISCO--(BUSINESS WIRE)--McKesson Corporation (NYSE:MCK) a leading international healthcare
services and information technology company, today announced an
agreement to purchase the pharmaceutical distribution division of UDG
Healthcare (UDG) based in Northern Ireland (United Drug Sangers) and the
Republic of Ireland (United Drug).
Under the terms of the agreement McKesson will acquire: United Drug and
United Drug Sangers, leading wholesale operations across the Republic of
Ireland and Northern Ireland; TCP, a leading home healthcare provider in
the Republic of Ireland; and MASTA, UDG’s travel healthcare business
based in the United Kingdom.
The transaction is subject to UDG shareholder approval and EU
competition clearance, among other customary closing conditions and is
expected to close in the first half of calendar year 2016.
More than 1,000 UDG employees will join McKesson as part of the
acquisition. The acquired operations will be reported as part of
McKesson’s International Pharmaceutical Distribution and Services
business under the leadership of Marc Owen, Chairman of the Management
Board at Celesio AG, the European business within McKesson’s
Distribution Solutions segment.
Commenting on the proposed acquisition, Paul C. Julian, Executive Vice
President and Group President for McKesson Distribution Solutions said:
“We are extremely pleased to announce the execution of an agreement to
add the pharmaceutical distribution business and other healthcare assets
of UDG to McKesson’s European business. At McKesson, we are committed to
providing our customers with more efficient delivery of healthcare
products and services globally.”
Marc Owen, Chairman of the Management Board at Celesio AG, said: “The
acquisition of UDG’s pharmaceutical distribution, home and travel
healthcare businesses in Ireland and the UK, will strengthen our
position in the industry. We have made this investment as part of our
growth strategy which leverages the positive trajectory of the wider
healthcare sector in Europe. This acquisition will also complement our
broader portfolio of assets in both Ireland and the United Kingdom. We
look forward to continuing UDG’s tradition of excellent customer service
and to working with the UDG team.”
Today’s announcement follows McKesson’s recent agreement to acquire 281
pharmacies operated by Sainsbury’s in the United Kingdom. Both the UDG
and Sainsbury’s acquisitions are expected to close in the first half of
calendar year 2016. In the first 12 months following the close of both
these acquisitions, McKesson expects the combined impact of these
transactions to be between 10* to 14* cents accretive to its adjusted
earnings per share. Both acquisitions are subject to merger control
clearance and other closing conditions.
McKesson Corporation, currently ranked 11th on the FORTUNE 500, is a
healthcare services and information technology company dedicated to
making the business of healthcare run better. We partner 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 us at www.mckesson.com.
About the 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 more than 38,000 colleagues, Celesio operates in 14 countries
around the world. Every day, the group serves over 2 million customers –
at about 2,200 pharmacies of its own and over 4,300 participants in
brand partnership schemes. With 134 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.
McKesson Corporation, San Francisco, USA, is the majority shareholder in
Celesio AG. The company acquired more than 75 percent of Celesio AG
shares in February 2014. McKesson provides solutions that include
pharmaceutical and medical-surgical supply management, healthcare
information technology, and business and clinical services.
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 statements regarding the ability
to complete the transaction considering the various closing conditions;
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; and any statements of assumptions
underlying any of the foregoing. Risks, uncertainties and assumptions
include risks related to the timing or ultimate completion of the
transaction, as the transaction is subject to certain closing
conditions, including receipt of all necessary regulatory clearances and
approval of UDG’s shareholders; 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 UDG’s products and services.
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.