Summary
McKesson Corporation (MCK) has filed an 8-K report detailing the completion of its acquisition of a majority stake in Celesio AG. This significant transaction, valued at approximately €3.7 billion (or $5.0 billion based on the exchange rate at the time), involved McKesson acquiring about 70.9% of Celesio's share capital from Franz Haniel & Cie. GmbH and also purchasing convertible bonds from Elliott Group. The acquisition was funded through a $4.957 billion senior bridge term loan and existing cash reserves. This strategic move positions McKesson to expand its international presence, particularly in the pharmaceutical wholesale and retail sectors, as Celesio operates in 14 countries. McKesson plans to launch a voluntary public tender offer for the remaining Celesio shares to gain full control. The integration of Celesio's operations is expected to be within McKesson's Distribution Solutions segment, with both companies intending to maintain their respective brands and customer channels.
Key Highlights
- 1McKesson Corporation completed the acquisition of a majority stake (approx. 70.9%) in Celesio AG on February 6, 2014.
- 2The total transaction value is approximately €3.7 billion (or $5.0 billion), including shares and convertible bonds.
- 3Funding for the acquisition was primarily sourced from a $4.957 billion senior bridge term loan and cash on hand.
- 4McKesson intends to launch a voluntary public tender offer for the remaining outstanding Celesio shares.
- 5Celesio is a significant international pharmaceutical wholesale, retail, and logistics company operating in 14 countries.
- 6Celesio's operations will be integrated into McKesson's Distribution Solutions segment.
- 7Both McKesson and Celesio plan to maintain their existing brands and customer support channels post-acquisition.