McKesson Corporation has agreed to purchase one of Canada’s leading drugstore chains, Rexall Health, in a $3bn deal.
Jürgen Schreiber to continue leading the business and build on recent improvements
McKesson Corporation, which is a leading international healthcare services and information technology company, is acquiring 470 drugstores from the Katz Group. The drugstores operate under the Rexall and Pharma Plus brands and will continue to be led by Jürgen Schreiber, who was appointed as CEO last year. Schreiber had previously led Shoppers Drug Mart in Canada from 2007 to 2011. Under his leadership the business had been investing in the in-store environment and building on its expertise in providing healthcare services.
Enhances McKesson’s retail pharmacy capabilities and procurement scale
The acquisition of Rexall Health supports McKesson’s commitment to improving healthcare solutions delivered in pharmacies and enhances its ability to provide a best-in-class pharmacy care through an expanded retail footprint. This deal comes as Canada’s pharmacy sector continues to evolve with more primary care being moved into the pharmacy and increasingly complex patient demand. Once completed, the acquisition of Rexall Health will enhance McKesson’s retail pharmacy capabilities and procurement scale. McKesson Canada’s diverse customer base, including its independent pharmacists, is expected to benefit from competitive pharmacy solutions and industry leading service levels.
Set to leverage McKesson’s scale to invest in the business
This is not the first deal between the two companies. In 2012, the Katz Group sold its banner pharmacy business, Drug Trading Company Limited, and its franchise pharmacy business, Medicine Shoppe Canada Inc., comprising of 850 pharmacies to McKesson. The businesses have also continued to work together on a number of strategic initiatives. This deal will enable Rexall to continue investing in the business and compete more effectively with the market leader, Shoppers Drug Mart, by leveraging the scale of its new parent company.