Rexall (known for decades as Pharma Plus) will sell its 470 drugstores to the USA health-services company McKesson Corp for about $3 billion deal. The acquisition strengthens McKesson’s position in Canada’s pharmaceutical supply chain, and is a natural next step for two companies that have worked together for over 20 years delivering care to Canadians. In 2012, the prescription drug distributor acquired Katz’s independent outlets and franchise businesses – primarily operating as I.D.A and Guardian – for about $920 million.
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McKesson Canada, which was founded there more than 100 years, has indicated that it will have more than 13,000 employees at the end of the transaction with Rexall.
Rexall Health will continue to be led by its current management, headed by CEO Jurgen Schreiber.
This is the second acquisition announced by San Francisco-based McKesson in recent weeks.
The deal isn’t expected to close until later this year, but Hammergren was optimistic about what the acquisition holds for the future.
McKesson, the Katz Group and Rexall all declined interview requests.
Schreiber was chief executive at Canada’s largest pharmacy chain for four years until 2011, before it was acquired by Loblaws.
Rexall is presently owned by an Edmonton company, the Katz Group, which has had to look for ways to compete since the acquisition of competitor Shoppers Drug Mart by Loblaw, increasing its purchasing power.
Like McKesson Canada, the operations of Rexall Health will be part of McKesson’s Distribution Solutions segment, reporting to Paul Julian, executive vice president and group president.
Among other things, Katz is the controlling shareholder of the Edmonton Oilers hockey team, and two minor league affiliates: the WHL’s Edmonton Oil Kings and the AHL Bakersfield Condors.
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According to Canadian Business Magazine, Katz Group founder Daryl Katz is Canada’s 14th richest person, with a net worth of $4.14 billion.
