McKesson completes Rexall Health acquisition

SAN FRANCISCO — McKesson completed its acquisition of Rexall Health for $2.1 billion.

“Today’s announcement marks a milestone for McKesson and Rexall Health. With complementary assets, industry expertise, and shared values, we will now serve our customers with enhanced retail pharmacy capabilities and a broader reach across Canada,” said John H. Hammergren, chairman and CEO, McKesson. “Patients across Canada will benefit from best-in-class pharmacy care through innovative care solutions and an expanded retail footprint. We are thankful to Daryl Katz, founder and chairman of Katz Group, one of Canada’s largest privately-owned enterprises, for having built such a strong pharmacy asset in the Canadian market.”

As part of the transaction, McKesson acquired approximately 470 retail pharmacies, and agreed to divest stores in 26 local markets that the Competition Bureau of Canada identified during its review of the transaction.

McKesson also announced it appointed Domenic Pilla CEO of McKesson Canada, effective Jan. 3. He will assume overall leadership responsibility for McKesson’s distribution and retail businesses in Canada, including Rexall Health. Pilla takes over for Jürgen Schreiber, who will leave to pursue other opportunities.

Pilla will report to Paul C. Julian, executive VP and group president of McKesson.

“Domenic Pilla is uniquely qualified to lead our expanded portfolio in Canada based on his previous experience as president of Shoppers Drug Mart and McKesson Canada,” Julian continued. “He brings deep knowledge of both the wholesale and retail sides of the business, and a proven track record of delivering results. We thank Jürgen Schreiber for his outstanding leadership in bringing this acquisition to fruition and wish him the greatest success.”