Summary
McKesson Corporation announced a significant strategic move with the entry into agreements to acquire a majority stake in Celesio AG, a Germany-based pharmaceutical wholesaler and pharmacy operator. The transaction, valued at approximately €6.1 billion (or $8.3 billion), involves McKesson's subsidiary acquiring 50.01% of Celesio from Franz Haniel & Cie. GmbH, followed by voluntary tender offers for the remaining shares and convertible bonds. This acquisition is designed to enhance McKesson's global reach, particularly in Europe, and expand its pharmaceutical distribution and related services. To finance this substantial acquisition, McKesson has secured a $5.5 billion 364-day senior bridge term loan facility. The company intends to use this bridge loan, along with existing cash, to fund the acquisition costs and transaction expenses, with plans to refinance the bridge loan with longer-term financing before its maturity. The deal is subject to customary closing conditions, including antitrust approvals and a minimum tender of 75% of Celesio's shares.
Key Highlights
- 1McKesson to acquire a majority stake (50.01%) in Celesio AG from Franz Haniel & Cie. GmbH.
- 2Total transaction value estimated at €6.1 billion (approximately $8.3 billion), including assumption of Celesio's debt.
- 3McKesson will launch parallel voluntary public tender offers for remaining Celesio shares and convertible bonds.
- 4A $5.5 billion 364-day senior bridge term loan facility has been secured to fund the acquisition.
- 5The acquisition is contingent on antitrust approvals and acquiring at least 75% of Celesio's shares on a fully diluted basis.
- 6McKesson plans to refinance the bridge loan with longer-term financing.
- 7The transaction aims to expand McKesson's global presence, particularly in Europe.