Rexall Health is changing hands. Healthcare services giant McKesson Corporation announced today that it is acquiring the Canadian drugstore chain from Katz Group, Rexall’s current parent company, in a $3 billion deal.
This deal solidifies the bond between Katz Group and McKesson, who have worked closely together in Canada’s healthcare industry for the past two decades. It also solidifies McKesson’s position in Canada as a leading pharmaceutical provider.
“The acquisition of Rexall Health supports McKesson’s commitment to drive value in the industry by improving healthcare solutions delivered in the pharmacy; it enhances our ability to provide best-in-class pharmacy care through an expanded retail footprint for patients across Canada,” said John H. Hammergren, chairman and CEO of McKesson Corporation, in a company statement. “Canada’s healthcare environment is rapidly evolving; it is marked by a move of primary care into pharmacy and increasingly complex patient demand. With today’s announcement, McKesson will bring together the strengths and expertise of our diverse portfolio to address challenges and opportunities in delivering the very best patient care.”
Despite the acquisition, Rexall Health will continue under its existing brand name and will retain its own dedicated management team.
“This transaction is a natural next step for two companies that have a history of working together to deliver care to Canadians,” said Rexall Health CEO Jürgen Schreiber, who will continue to lead the Rexall business. According to Schreiber, the resources that this move provides will help strengthen the Rexall brand to deliver the best care to its customers.
“McKesson has been active in Canada for over 100 years, helping to build a strong network of independent pharmacies,” he continued. “With McKesson, Rexall Health will be able to serve a complete range of pharmaceutical care needs and ensure choice to consumers at a time when Canadians are more concerned than ever about their healthcare.”