McKesson Corporation Announces Sale of Rexall and Well.ca Businesses to Birch Hill Equity Partners

By: McKesson Corporation via Business Wire

September 05, 2024 at 06:00 AM EDT

McKesson Corporation (NYSE: MCK) announced today that it has signed an agreement to sell its Canada-based Rexall and Well.ca businesses to Birch Hill Equity Partners, a Canadian private equity firm.

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 Canada constitute “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, that involve risks and uncertainties that could cause actual results to differ materially from those in those statements. It is not possible to identify all such risks and uncertainties. The reader should not place undue reliance on forward-looking statements, which speak only as of the date they are first made. Except to the extent required by law, the company undertakes no obligation to publicly update forward-looking statements. We encourage investors to read the important risk factors described in the company’s most recent Form 10-K filed with the Securities and Exchange Commission. These risk factors include, but are not limited to: we might be adversely impacted by delays or other difficulties with divestitures such as the transactions described in this press release; we from time to time record significant charges from impairment to goodwill, intangibles and other assets or investments; we might be adversely impacted by events outside of our control, such as widespread public health issues, natural disasters, political events and other catastrophic events.

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.