- German court clears registration of
domination and profit and loss transfer agreement.
- Marks a key milestone in the
acquisition, allowing McKesson and Celesio to operate as an
integrated company.
- McKesson and Celesio will come together
to create value and deliver benefits for key stakeholders of both
companies, including customers, manufacturing partners and
employees.
- McKesson continues to expect annual
synergies of $275 - $325 million by the fourth year following
registration of the domination and profit and loss transfer
agreement.
McKesson Corporation (NYSE:MCK) (“McKesson”), a leading
North American healthcare services and information technology
company, announced that the Stuttgart Higher Regional Court
approved the registration of the domination and profit and loss
transfer agreement between Celesio AG [ISIN DE000CLS1001]
(“Celesio”), a leading international wholesale and retail
company and provider of logistics and services to the
pharmaceutical and healthcare sectors, and McKesson Deutschland
GmbH & Co. KGaA (formerly known as Dragonfly GmbH & Co.
KGaA), a wholly owned subsidiary of McKesson, earlier today.
The agreement is expected to be formally registered shortly. The
registration of the domination profit and loss transfer agreement
marks a key milestone in the acquisition of Celesio, first
announced on October 24, 2013, allowing McKesson and Celesio to
operate as an integrated company.
“Today’s announcement is an important milestone and clears the
path for our companies to operate in an integrated way, creating a
global leader in pharmaceutical purchasing and distribution. With
the registration of the domination and profit and loss transfer
agreement, we will bring together the strengths and expertise of
our collective organizations to address the opportunities and needs
facing our customers and business partners around the world,” said
John H. Hammergren, chairman and chief executive officer, McKesson
Corporation.
“As the needs of the healthcare industry continue to evolve,
broader global reach, channel influence, and greater purchasing
scale are increasingly important. With complementary geographic
footprints, shared values, and industry expertise across multiple
markets, we will now serve our customers as one of the largest
pharmaceutical wholesalers and providers of logistics and
healthcare services in the world. Together, we will continue to
create value in the supply chain and value for our shareholders,”
added Hammergren.
Combined Company
With collectively over 360 years of operating experience, the
combined group is expected to have annual revenues in excess of
$170 billion, approximately 85,000 employees worldwide, and
operations in more than 20 countries.
“Today marks an important achievement in the history of our
respective organizations. Upon registration, we will begin working
together to provide the most advanced delivery of healthcare
products and services to customers and partners around the world.
Our customers will benefit from increased supply chain efficiency,
enhanced global sourcing, and a broad array of innovative product,
technology and business solutions,” said Paul C. Julian, executive
vice president and group president, McKesson Corporation. “We
remain committed to supporting Celesio and its business leaders as
they implement their strategy for growth and we are delighted to
achieve this important milestone which allows our organizations to
more closely align in the areas where we can deliver further value
for our customers and manufacturing partners.”
McKesson and Celesio serve approximately 120,000 pharmacy and
hospital locations on a daily basis in the U.S., Canada, Europe and
Brazil, including more than 12,000 pharmacies that are either owned
or are part of a strategic banner or franchise network of community
pharmacies.
Leadership Team
The operations of Celesio will be part of McKesson’s
Distribution Solutions segment, led by Paul C. Julian, executive
vice president and group president, McKesson Corporation. The
operations of Celesio will continue to be led by its management
board with Marc Owen as its chairman, overseen by the Celesio
Supervisory Board. Upon registration of the domination and profit
and loss transfer agreement, a newly formed Global Procurement team
will lead the combined McKesson and Celesio strategy with our
manufacturing partners across the globe.
“The corporate cultures of both McKesson and Celesio are based
on integrity, accountability, respect, and excellence, with a
commitment to always putting customers first,” said Marc Owen,
Chairman of Celesio’s Management Board. “Both organizations have
built strong customer relationships and have a deep understanding
of their markets. Completing this important milestone enables us to
align our organizations more closely in our common goal of creating
additional value for our customers and manufacturing partners. And
our employees will benefit from being part of an even stronger
international company with tremendous leadership and growth
opportunities.”
Financial Expectations
- By the fourth year following the
registration of the domination profit and loss transfer agreement,
McKesson expects to realize annual synergies between $275 million
and $325 million.
- McKesson currently owns approximately
76% of the outstanding shares of Celesio.
- McKesson will continue to consolidate
the financial results of Celesio.
About McKesson Corporation
McKesson Corporation, currently ranked 15th on the FORTUNE 500,
is a healthcare services and information technology company
dedicated to making the business of healthcare run better. McKesson
partners 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
www.mckesson.com.
About 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 some 39,000 employees, Celesio operates in 14 countries
around the world. Every day, the group serves over 2 million
customers – at 2,200 pharmacies of its own and 4,300 participants
in brand partnership schemes. With 133 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.
Forward-looking Statements
This press release includes “forward-looking statements” within
the meaning of Section 27A of the U.S. Securities Act of 1933 and
Section 21E of the U.S. 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.
These statements do not represent facts and may be characterized by
words such as “expect”, “believe”, “estimate”, “intend”, “aim”,
“assume” or similar expressions. Such statements express the
intentions, opinions, or current expectations of McKesson, and
Celesio with respect to possible future events, e.g., regarding
annual synergies or future financial results of McKesson or
Celesio. Such forward-looking statements are based on current
plans, estimates and forecasts which McKesson and Celesio have made
to the best of their knowledge, but which do not claim to be
correct in the future. Forward-looking statements are subject to
risks and uncertainties that are difficult to predict and generally
cannot be influenced by McKesson or Celesio. The forward-looking
statements contained in this press release could turn out to be
incorrect and/or future events and developments could considerably
deviate from the forward-looking statements contained in this press
release. Subject to compliance with applicable law and regulations,
neither McKesson nor McKesson Deutschland GmbH & Co. KGaA
intend to update these forward-looking statements or to undertake
any obligation to do so.
McKesson Corporation Contacts:Investors and Financial
Media:Erin Lampert, +1
415-983-8391Erin.Lampert@mckesson.comMedia:Kris Fortner, +1
415-983-8352Kris.Fortner@mckesson.com
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