McKesson Corporation Buys Canadian Pharmacy Marketing Group Assets for $918 Million

McKesson Corp. (MCK), the biggest U.S. drug distributor, said it agreed to spend about $918 million for the marketing and franchising businesses of more than 1,000 Canadian independent pharmacies. McKesson will buy Drug Trading Co. and Medicine Shoppe Canada Inc. from Katz Group Canada Inc., a closely held Edmonton, Alberta-based company. The deal is expected to close in the first half of this year, subject to regulatory approval in Canada, San Francisco-based McKesson said today in a statement. The deal gives McKesson the marketing and purchasing arms for a network of 850 independent drugstores in Canada, and the franchise business for 160 Medicine Shoppe pharmacies, the company said in its statement. McKesson already is the main drug distributor for the units and will integrate operations into its existing Canadian business.