McKesson Canada Corporation, an indirect, wholly owned subsidiary of McKesson Corporation, completed its acquisition of substantially all of the assets of Katz Group Canada Inc.'s independent retail pharmaceutical banner business carried on by Drug Trading Company Limited and all of the shares of its independent franchise retail pharmaceutical business carried on by Medicine Shoppe Canada Inc. The transaction was completed in consideration of approximately $925 million payable in cash. McKesson also acquired joint ownership of a software application and related intellectual property produced by Propharm Limited, another affiliate of Katz Group Canada Inc., which supports pharmacy dispensary systems.
McKesson, currently ranked 15th on the Fortune 500 with annual sales in excess of US$112 billion, is the world's largest healthcare services and information technology company, supplying more than 40,000 pharmacies in the United States and developing healthcare information technology solutions for diverse segments of the healthcare industry.
Katz Group operates a retail pharmacy network in Canada. Drug Trading Company Limited provided marketing and purchasing services to around 900 independently owned pharmacies, the majority of which operate under the brands I.D.A. and Guardian, located in Western Canada, Ontario and Atlantic Canada. Medicine Shoppe Canada Inc. provides franchise services to over 160 independent pharmacies operating in the same regions.
McKesson Canada, an indirect wholly owned subsidiary of McKesson, is the largest pharmaceutical distributor in Canada. The company, through its network of 17 distribution centers, provides logistics and distribution to more than 800 manufacturers, delivering their products to retail pharmacies, hospitals, long-term care centers, clinics and institutions throughout Canada. McKesson Canada has also automated over 2,500 retail pharmacies and is active in hospital automation solutions, dispensing more than 100 million doses each year. In partnership with other McKesson businesses, McKesson Canada provides a full range of services to Canadian manufacturers and healthcare providers, contributing to the quality and safety of care for patients.
McKesson was led internally by Ann Mao, Jennifer Zerczy and Michele Lau of the McKesson Law Department. Blake, Cassels & Graydon LLP acted as counsel to McKesson, with a team led by Tom McKee and including Paul Singh, Doug Robertson, Megan Roberts, Thomas Rowe, Guy Amini, Aaron Libbey, Andrew Thompson and Arash Amouzgar (M&A); Jeffrey Trossman, Paul Stepak and Allan Gelkopf (tax); Rob Kwinter, Navin Joneja, Litsa Kriaris and Kevin MacDonald (competition); Andrea York, Connie Reeve and Lisa Carty (labour & employment, pension & employee benefits); Tony Prenol and Anil Bhole (intellectual property); Lauren Temple (real estate) and Peter Hogg and Alice Tseng (regulatory).
Katz Group was led internally by John Karvellas and Mischa Kowall and was represented by Fraser Milner Casgrain LLP with a team that included Robert Roth, Shawna Vogel, Sarat Maharaj, Heather Barnhouse, Sterling Lawrence, Nancy Karvellas, Michael Beard and Robert de Guzman (M&A); Barry Zalmanowitz, Sandy Walker and Julia Jensen (competition); Fausto Franceschi, Mark Dunsmuir and Mary Picard (labour & employment, pension & employee benefits); Leah Tolton, Darlene Scott and Sapan Deol (corporate finance); Tom Sides (intellectual property) and Don Sommerfeldt, Mark Woltersdorf and Keith Hennel (tax).