McKesson Announces Agreement to Purchase the Pharmaceutical Distribution Division of UDG Healthcare plc
September 18 2015 - 4:37AM
Business Wire
- McKesson to acquire the pharmaceutical
distribution division of UDG Healthcare plc for €408 million in
cash.
- Acquisition will add a leader in
pharmaceutical distribution across the Republic of Ireland and
Northern Ireland to McKesson’s European business.
- The acquisition is subject to UDG
Healthcare shareholder approval and EU competition clearance.
McKesson Corporation (NYSE:MCK) a leading international
healthcare services and information technology company, today
announced an agreement to purchase the pharmaceutical distribution
division of UDG Healthcare (UDG) based in Northern Ireland (United
Drug Sangers) and the Republic of Ireland (United Drug).
Under the terms of the agreement McKesson will acquire: United
Drug and United Drug Sangers, leading wholesale operations across
the Republic of Ireland and Northern Ireland; TCP, a leading home
healthcare provider in the Republic of Ireland; and MASTA, UDG’s
travel healthcare business based in the United Kingdom.
The transaction is subject to UDG shareholder approval and EU
competition clearance, among other customary closing conditions and
is expected to close in the first half of calendar year 2016.
More than 1,000 UDG employees will join McKesson as part of the
acquisition. The acquired operations will be reported as part of
McKesson’s International Pharmaceutical Distribution and Services
business under the leadership of Marc Owen, Chairman of the
Management Board at Celesio AG, the European business within
McKesson’s Distribution Solutions segment.
Commenting on the proposed acquisition, Paul C. Julian,
Executive Vice President and Group President for McKesson
Distribution Solutions said: “We are extremely pleased to announce
the execution of an agreement to add the pharmaceutical
distribution business and other healthcare assets of UDG to
McKesson’s European business. At McKesson, we are committed to
providing our customers with more efficient delivery of healthcare
products and services globally.”
Marc Owen, Chairman of the Management Board at Celesio AG, said:
“The acquisition of UDG’s pharmaceutical distribution, home and
travel healthcare businesses in Ireland and the UK, will strengthen
our position in the industry. We have made this investment as part
of our growth strategy which leverages the positive trajectory of
the wider healthcare sector in Europe. This acquisition will also
complement our broader portfolio of assets in both Ireland and the
United Kingdom. We look forward to continuing UDG’s tradition of
excellent customer service and to working with the UDG team.”
Today’s announcement follows McKesson’s recent agreement to
acquire 281 pharmacies operated by Sainsbury’s in the United
Kingdom. Both the UDG and Sainsbury’s acquisitions are expected to
close in the first half of calendar year 2016. In the first 12
months following the close of both these acquisitions, McKesson
expects the combined impact of these transactions to be between 10*
to 14* cents accretive to its adjusted earnings per share. Both
acquisitions are subject to merger control clearance and other
closing conditions.
* Exchange rates: 1 Euro = US$1.10; 1 GBP = US$1.55
About McKesson Corporation
McKesson Corporation, currently ranked 11th on the FORTUNE 500,
is a healthcare services and information technology company
dedicated to making the business of healthcare run better. We
partner 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 us
at www.mckesson.com.
About the 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 more than 38,000 colleagues, Celesio
operates in 14 countries around the world. Every day, the group
serves over 2 million customers – at about 2,200 pharmacies of its
own and over 4,300 participants in brand partnership schemes. With
134 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.
McKesson Corporation, San Francisco, USA, is the majority
shareholder in Celesio AG. The company acquired more than 75
percent of Celesio AG shares in February 2014. McKesson provides
solutions that include pharmaceutical and medical-surgical supply
management, healthcare information technology, and business and
clinical services.
Risk Factors
This press release includes “forward-looking statements” within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the 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, including
statements regarding the ability to complete the transaction
considering the various closing conditions; the expected benefits
and costs of the transaction; any projections of earnings, revenues
or other financial items; any statements of the plans, strategies
and objectives of management for future operations; any statements
regarding product or service development, extensions or
integration; any statements of expectation or belief; any
statements regarding general industry conditions and competition;
any statements regarding economic conditions; and any statements of
assumptions underlying any of the foregoing. Risks, uncertainties
and assumptions include risks related to the timing or ultimate
completion of the transaction, as the transaction is subject to
certain closing conditions, including receipt of all necessary
regulatory clearances and approval of UDG’s shareholders; the
possibility that expected benefits may not materialize as expected;
McKesson’s ability to successfully implement integration
strategies; as well as the ability to ensure continued performance
or market growth of UDG’s products and services. These risks,
uncertainties and other factors, and the general risks associated
with McKesson’s business described in the reports and other
documents filed with the Securities and Exchange Commission, could
cause actual results to differ materially from those referred to in
the forward-looking statements. All forward-looking statements are
based on information currently available to McKesson and are
qualified in their entirety by this cautionary statement. Except as
required by law, McKesson assumes no obligation to update any such
forward-looking statements or other statements included in this
press release.
Shareholders are encouraged to review SEC filings and more
information about McKesson, which are located on the company’s
website.
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version on businesswire.com: http://www.businesswire.com/news/home/20150918005149/en/
McKesson Corporation Contacts:Investors and Financial
Media:Erin Lampert, 415-983-8391Erin.Lampert@mckesson.comorGeneral
and Business Media:Kris Fortner,
415-983-8352Kris.Fortner@mckesson.comorEuropean Media
Contacts:Germany:Celesio AGRainer Berghausen, +49 (0)
711.5001-549media@celesio.comorUK:Celesio UKClaire Connolly, +44
(0) 24 7643 2192claire.connolly@celesio.co.ukorRepublic of
Ireland:PR360Dan Pender, +353 (0)1 6371777 / +353
(0)872313415dan@pr360.ie
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