McKesson Corp to acquire Katz Group Canada's pharmacy assets for $918 mn

McKesson Corporation, the world's largest health care company, yesterday said that it will buy a big part of drug store operator Katz Group Canada Inc, for C$920 million ($918 million).

McKesson will buy Drug Trading Co. and Medicine Shoppe CanadaInc. from privately held Edmonton, Alberta-based Katz Group Canada Inc.

Under the deal, McKesson will acquire nearly all of the assets of Drug Trading, which consists of a marketing and purchasing arm for a network of more than 850 independently-owned pharmacies located in Ontario, Western Canada and Atlantic Canada, the majority of which operate under the brands I.D.A. and Guardian.

McKesson, which has been the main drug distributor to the Drug Trading and Medicine Shoppe Canada independent pharmacies for many years, will also acquire Medicine Shoppe Canada Inc., which operates the franchise business of providing services to more than 160 independent pharmacies.

As part of the deal, McKesson will also acquire joint ownership of the ProPharm software application, which supports pharmacy dispensary systems.

McKesson Canada currently operates a number of banner groups, including Proxim, Associated Retail Pharmacy and Family Health Care Pharmacy.