McKesson Corp. and Katz Group announced a definitive agreement to acquire Rexall Health from Katz Group for $3 billion CAD. Rexall Health has 470 retail pharmacies, primarily in Ontario and Western Canada. McKesson is expected to keep the Rexall brand in Canada
“The acquisition of Rexall Health supports McKesson’s commitment to drive value in the industry by improving healthcare solutions delivered in the pharmacy,” said McKesson chairman and CEO John H. Hammergren. “It enhances our ability to provide best-in-class pharmacy care through an expanded retail footprint for patients across Canada.”
McKesson acquired Katz Group’s 1,100 independent and franchise pharmacy business in 2012 for $920 million.
Our Take: McKesson’s latest move is part of a series of acquisitions that broaden the company’s service offerings and expand geographically. Less than two weeks ago, McKesson said it was acquiring Manhattan Beach, Calif.-based Vantage Oncology and Cary, N.C.-based Biologics, with a combined transaction value of $1.2 billion.
The move also partly replaces business lost when Rite Aid Corp. agreed to be acquired by Walgreens Boots Alliance. Walgreens uses McKesson rival AmerisourceBergen for its pharmacy supplies.
But the deal could also foreshadow a pending drugstore chain acquisition here in the U.S.