McKesson (MCK) Acquires $8.3 Billion Stake in Celesio

Shares of healthcare services firm McKesson Corporation (MCK) surged last week, after the company reported that it would acquire a controlling stake in Celesio, a German healthcare and pharmaceutical company which operates in 14 countries across the world. Celesio employs approximately 38,000 employees and generated 22 billion euros ($30.3 billion) in revenue last year.

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Stock Analysis The deal is valued at $8.3 billion, and would create one of the worldâ s largest pharmaceutical wholesalers and providers of logistics and services focused on the healthcare sector. The deal gives McKesson a 50.01% share of Celesio, through a purchase of shares from Franz Haniel & Co., the companyâ s majority shareholder. The deal has been approved by both the McKesson's and Franz Haniel's boards. McKesson intends to acquire the remaining outstanding shares in Celesio for 23 euros ($31.76) per share, paying a 39% premium above the three-month average pre-takeover speculation price. The combined company would generate annual revenue exceeding $150 billion, and have a workforce of 81,500 employees worldwide, with operations in 20 countries. McKesson CEO John Hammergren noted the need for strategic alliances and mergers, stating, â

Published on Nov 1, 2013
By Leo Sun
Leo Sun
Leo Sun is a freelance finance writer and position trader. He focuses on a combination of value and momentum investing, with a strong interest in the trading philosophies of Warren Buffett and Peter Lynch. Leo also has experience writing articles to help small business owners acquire loans and manage their finances. He regularly contributes to the Stock of the Day analysis.

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