North Amercia’s largest pharmaceutical distributor has purchased Canadian retail pharmacy chain, Rexall Health, for $2.9 billion.
McKesson Corporation will acquire approximately 470 Rexall stores as a result of the transaction. The completed deal was announced Dec. 28.
“[The] 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 of McKesson Corporation.
The McKesson Corporation, headquartered in San Francisco, operates in every province and territory across Canada as McKesson Canada. In addition to Rexall, the company also owns and operates Guardian, IDA, Proxim, Remedy’sRx and The Medicine Shoppe pharmacy chains.
McKesson used the acquisition to announce its new CEO, Domenic Pilla. Pilla will manage McKesson Canada’s extensive portfolio and will appoint a new president of Rexall Health to direct Rexall’s day-to-day operations.
The merger of the medication wholesale giant and the homegrown retail chain will enable a wider range of choice to customers, according to Paul C. Julian, executive vice-president and group president of the McKesson Corporation.
“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.”
Edmonton-based the Katz Group of Companies was the previous owner of Rexall Health.