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John R. Fischer, Senior Reporter | July 15, 2021
McKesson is selling a number of its European businesses to the PHOENIX group
McKesson Corporation is selling a number of its European businesses to the PHOENIX group.
The supply chain company will transfer ownership of its business in France, Italy, Ireland, Portugal, Belgium and Slovenia to the PHOENIX group, a European healthcare provider that supplies medical facilities with drugs and medical products. Once completed, the deal will allow McKesson to focus on and invest in the strategic growth of its oncology and biopharma services, as well as other core areas.
“We are confident that under the PHOENIX group’s strong leadership, the businesses included in this agreement will be well-positioned for the future to compete more effectively and better serve customers,” said Brian Tyler, chief executive officer of McKesson, in a statement.
The sale also includes McKesson’s German-based AG headquarters in Stuttgart, Recucare GmbH; its German wound-care business; its share services center in Lithuania; and its 45% ownership stake in Brocacef, its joint venture in the Netherlands.
McKesson will retain its European businesses in the U.K., Norway, Austria and Denmark but says it is exploring strategic alternatives for all remaining European businesses. It plans to focus future investments on growth strategies outside of Europe. It will also keep its minority equity stake in its German joint venture with Walgreens Boot Alliance.
For the PHOENIX Group, the agreement expands its portfolio into countries where it does not yet have a presence and further expands its existing omnichannel services through the transaction and the digital expertise of both companies. It also gives it an edge amid growing competition, increasing margin pressure and demographic changes in the European healthcare sector, with the ability to better provide both in-store and digital healthcare services and products to customers.
“By expanding our European presence, we are making the PHOENIX group even more resilient to future economic and regulatory changes in the market. This also offers us new opportunities to actively shape the digital transformation of the healthcare sector in Europe for the benefit of patients," said Sven Seidel, chief executive officer of the PHOENIX group.
The deal is expected to be completed in 2022 and is subject to customary closing conditions, including receipt of required regulatory approval.
McKesson declined to comment, saying that it will not provide any more details on the sale until its earnings call on August 4.
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