McKesson signed an agreement today with German company Haniel to acquire its 50.01 stake in Celesio and is making an offer to other shareholders at 23 euros a share. The offer represents a 5.8 percent premium to Celesio’s closing share price on Wednesday.

 

San Francisco-based McKesson is also assuming Celesio’s outstanding debt, lifting the value of the deal up to $8.3 billion. Celesio’s management has welcomed the offer.

 

McKesson supplies medicines to half of U.S. hospitals, as well as doctors and health plans. It has more than 37,000 employees and reported revenue of $122.7 billion last year.

 

Stuttgart-based Celesio has about 38,000 employees, operates in 14 countries, runs 2,200 pharmacies and posted revenue of 22.3 billion euros (about $29.5 billion) in 2012.

 

The two companies plan to maintain their own brands after the deal is completed, McKesson said.

 

Date: October 24, 2013

Source: Associated Press