Rexall Sold for $3 Billion
CBJ — Rexall has been sold by the Daryl Katz Group to McKesson Corporation of the U.S. for $3 billion.
The deal comes 2.5 years after Loblaw’s blockbuster takeover of Shoppers Drug Mart and brings a new look to the country’s retail landscape.
“The acquisition of Rexall Health supports McKesson’s commitment to drive value in the industry by improving healthcare solutions delivered in the pharmacy,” said John Hammergren, chairman and chief executive officer of McKesson said in a statement on Wednesday.
Rexall is just one piece of a vast business empire assembled by Daryl Katz. Through a sports and entertainment division that includes the NHL’s Edmonton Oilers and a real estate business that’s in the midst of major development projects in downtown Edmonton, Katz has generated a fortune that puts him among the biggest names in business. Forbes pegged his wealth at US$3.3 billion in a list of global billionaires released this week, ranking him as the 12th richest Canadian.
Katz built his pharmacy fortune by buying the Canadian rights to U.S. franchise Medicine Shoppe in 1991. Then he acquired Canada’s Rexall, which was struggling at the time, and eventually made a foray in the U.S. market by snapping up Snyders Drug Store and Drug Emporium.