Summary
McKesson Corporation (MCK) announced on January 31, 2016, its definitive agreement to sell its Brazilian pharmaceutical distribution business. This business was previously acquired as part of the Celesio AG transaction. The divestiture is expected to result in an after-tax impairment charge to discontinued operations, estimated to be between $70 million and $90 million. Investors should note that this sale represents a strategic move to streamline operations and potentially exit a non-core market. While the impairment charge may impact reported earnings in the near term, it signals McKesson's focus on optimizing its global footprint. The transaction is anticipated to close in the first quarter of fiscal year 2017, subject to customary closing conditions.
Key Highlights
- 1McKesson Corporation entered into a definitive agreement to sell its Brazilian pharmaceutical distribution business.
- 2The sale is a result of the prior acquisition of Celesio AG.
- 3The company anticipates recognizing an after-tax impairment charge of approximately $70 million to $90 million.
- 4The impairment charge will be recognized primarily upon the disposal of the business and will be classified under discontinued operations.
- 5The transaction is expected to be completed during the first quarter of fiscal year 2017.
- 6The sale is subject to customary closing conditions.