McKesson Corporation Announces Sale of Rexall and Well.ca Businesses to Birch Hill Equity Partners
McKesson (NYSE: MCK) has announced the sale of its Canada-based Rexall and Well.ca businesses to Birch Hill Equity Partners, a Canadian private equity firm. This strategic move aligns with McKesson's enterprise strategy to focus on growing its oncology and biopharma services platforms. The transaction allows McKesson to streamline its business and prioritize investments in key growth areas.
Despite this divestiture, McKesson remains committed to its Canadian distribution and biopharma businesses. The company believes that Rexall and Well.ca will benefit from Birch Hill's resources and capital to expand their services across Canada. McKesson Canada intends to continue as a wholesale distribution supplier to both businesses after the transaction closes.
McKesson (NYSE: MCK) ha annunciato la vendita delle sue attività Rexall e Well.ca con sede in Canada a Birch Hill Equity Partners, un fondo di private equity canadese. Questa mossa strategica è in linea con la strategia aziendale di McKesson di concentrarsi sulla crescita delle sue piattaforme di servizi onco e biopharma. La transazione consente a McKesson di semplificare la propria attività e di dare priorità agli investimenti nelle aree chiave di crescita.
Nonostante questa dismissione, McKesson rimane impegnata nelle sue attività di distribuzione e biopharma in Canada. L'azienda crede che Rexall e Well.ca trarranno beneficio dalle risorse e dal capitale di Birch Hill per espandere i loro servizi in tutto il Canada. McKesson Canada intende continuare a operare come fornitore di distribuzione all'ingrosso per entrambe le aziende dopo la chiusura della transazione.
McKesson (NYSE: MCK) ha anunciado la venta de sus negocios Rexall y Well.ca con sede en Canadá a Birch Hill Equity Partners, una firma de capital privado canadiense. Este movimiento estratégico está en línea con la estrategia empresarial de McKesson de centrarse en el crecimiento de sus plataformas de servicios oncológicos y biofarma. La transacción permite a McKesson simplificar su negocio y priorizar inversiones en áreas clave de crecimiento.
A pesar de esta desinversión, McKesson sigue comprometida con sus negocios de distribución y biofarma en Canadá. La compañía cree que Rexall y Well.ca se beneficiarán de los recursos y el capital de Birch Hill para expandir sus servicios en todo Canadá. McKesson Canada tiene la intención de continuar como proveedor mayorista para ambas empresas después de que se cierre la transacción.
매켄슨 (NYSE: MCK)은 캐나다에 본사를 둔 Rexall 및 Well.ca 사업을 캐나다의 사모펀드인 Birch Hill Equity Partners에 매각한다고 발표했습니다. 이 전략적 결정은 매켄슨의 기업 전략과 일치하여 온콜로지 및 바이오파마 서비스 플랫폼의 성장을 집중적으로 추진하는 것입니다. 이 거래는 매켄슨이 사업을 간소화하고 주요 성장 분야에 대한 투자를 우선시할 수 있게 합니다.
이러한 매각에도 불구하고 매켄슨은 캐나다의 유통 및 바이오파마 사업에 전념하고 있습니다. 회사는 Rexall과 Well.ca가 Birch Hill의 자원과 자본을 통해 캐나다 전역에서 서비스를 확장할 것이라고 믿고 있습니다. 매켄슨 캐나다는 거래가 종료된 후에도 두 사업체에 대한 도매 유통 공급업체로 계속 운영할 계획입니다.
McKesson (NYSE: MCK) a annoncé la vente de ses activités Rexall et Well.ca basées au Canada à Birch Hill Equity Partners, une société de capital-investissement canadienne. Ce mouvement stratégique s'inscrit dans la stratégie d'entreprise de McKesson visant à se concentrer sur la croissance de ses plateformes de services en oncologie et biopharma. La transaction permet à McKesson de rationaliser ses opérations et de prioriser les investissements dans des domaines clés de croissance.
Malgré cette cession, McKesson reste engagé dans ses activités de distribution et de biopharma au Canada. L'entreprise croit que Rexall et Well.ca bénéficieront des ressources et du capital de Birch Hill pour étendre leurs services à travers le Canada. McKesson Canada a l'intention de continuer à agir en tant que fournisseur de distribution en gros pour les deux entreprises après la clôture de la transaction.
McKesson (NYSE: MCK) hat den Verkauf seiner in Kanada ansässigen Rexall- und Well.ca-Geschäfte an Birch Hill Equity Partners, eine kanadische Private-Equity-Firma, bekannt gegeben. Dieser strategische Schritt steht im Einklang mit der Unternehmensstrategie von McKesson, sich auf das Wachstum seiner Onkologie- und Biopharma-Serviceplattformen zu konzentrieren. Die Transaktion ermöglicht es McKesson, sein Geschäft zu straffen und Investitionen in wichtige Wachstumsbereiche zu priorisieren.
Trotz dieser Veräußertung bleibt McKesson seinen Vertriebsgeschäften und Biopharma-Aktivitäten in Kanada verpflichtet. Das Unternehmen ist der Überzeugung, dass Rexall und Well.ca von den Ressourcen und dem Kapital von Birch Hill profitieren werden, um ihre Dienstleistungen in ganz Kanada auszubauen. McKesson Kanada beabsichtigt, auch nach Abschluss der Transaktion als Großhandelsvertriebsanbieter für beide Unternehmen aufzutreten.
- Strategic alignment with McKesson's focus on oncology and biopharma services
- Streamlining of business operations
- Potential for continued revenue through wholesale distribution to Rexall and Well.ca
- Opportunity for Rexall and Well.ca to expand under new ownership
- Divestiture of established retail pharmacy and e-commerce businesses in Canada
- Potential loss of direct retail market presence in Canada
Insights
McKesson's divestiture of Rexall and Well.ca aligns with its strategic focus on high-growth areas like oncology and biopharma services. This move is likely to streamline operations and potentially improve profit margins. While the sale price isn't disclosed, it's important to monitor how McKesson reinvests these funds.
The company's commitment to remain a wholesale distributor to Rexall and Well.ca suggests a continued revenue stream, albeit potentially smaller. Investors should watch for details on the financial impact in upcoming earnings calls. This strategic shift could enhance McKesson's competitive position in its core growth areas, potentially driving long-term value creation.
This transaction reflects a broader trend in the healthcare industry where companies are refocusing on core competencies. McKesson's decision to divest retail pharmacy operations while maintaining distribution services demonstrates a shift towards higher-margin, specialized services in oncology and biopharma.
The move could position McKesson more favorably in the evolving healthcare landscape, especially as personalized medicine and specialty drugs gain prominence. However, it's worth noting that this reduces McKesson's direct consumer touchpoints in Canada, which could impact its market intelligence and consumer insights in that region.
The sale to Birch Hill Equity Partners, a Canadian firm, suggests a strategic localization of these retail assets. This could potentially lead to more tailored services for Canadian consumers. For McKesson, this move reduces exposure to the competitive retail pharmacy sector in Canada, allowing for resource reallocation to higher-growth areas.
Investors should consider the long-term implications of this strategic pivot. While it may result in short-term revenue reduction, the focus on oncology and biopharma services could yield higher returns in the future, given the growing demand for specialized healthcare services and the increasing prevalence of chronic diseases.
In line with McKesson Corporation’s enterprise strategy, this transaction enables McKesson to further focus and prioritize investments to grow its oncology and biopharma services platforms. McKesson Corporation remains fully committed to and confident in the strength of our Canadian distribution and biopharma businesses, delivering solutions to ensure the delivery of better health outcomes.
“This transaction marks an important milestone aligned to our enterprise strategy, advancing our strategic priorities, further streamlining our business and prioritizing investment in our growth areas of oncology and biopharma services,” said Brian Tyler, Chief Executive Officer, McKesson. “We remain fully committed to and confident in the strength of our Canadian distribution and biopharma businesses. I am proud of the accomplishments that Rexall and Well.ca have achieved with McKesson and I have every confidence that both businesses will flourish under Birch Hill’s ownership.”
Birch Hill Equity Partners is a mid-market Canadian private equity firm with more than 30 years of experience supporting Canadian companies on driving growth initiatives. Through this transaction, we believe Rexall and Well.ca will have a partner committed to investing the resources and capital needed to build on the businesses’ strong foundation, while providing services to Canadians from more locations, to address critical healthcare needs. McKesson Canada continues to see value in Rexall and Well.ca and intends to remain a wholesale distribution supplier to each business.
McKesson Canada will continue to own and operate Rexall and Well.ca until transaction close, which is subject to customary closing conditions, including necessary regulatory clearances.
Cautionary Statements
Except for historical information, statements in this press release related to McKesson’s proposed disposition of the Rexall and Well.ca operations and assets in
About McKesson Corporation
McKesson Corporation is a diversified healthcare services leader dedicated to advancing health outcomes for patients everywhere. Our teams partner with biopharma companies, care providers, pharmacies, manufacturers, governments, and others to deliver insights, products and services to help make quality care more accessible and affordable. Learn more about how McKesson is impacting virtually every aspect of healthcare at McKesson.com and read Our Stories.
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Investor Contact
Rachel Rodriguez
469-260-0556
Rachel.Rodriguez@McKesson.com
Media Contact
Media@mckesson.ca
Source: McKesson Corporation
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