US-based McKesson Corporation has agreed to divest its European businesses in France, Italy, Ireland, Portugal, Belgium and Slovenia to German pharmaceutical wholesaler Phoenix Group.
The sale also includes its German headquarters, wound-care business Recucare, shared services centre in Lithuania, and a 45% stake in Brocacef, its joint venture in the Netherlands.
Phoenix Group is an integrated healthcare provider, which has been serving customers, patients, and partners across Europe for more than 25 years.
The transaction is expected to be closed in 2022, subject to customary closing conditions, including necessary regulatory approvals.
McKesson CEO Brian Tyler said: “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.
“We will continue to operate our remaining businesses in the UK, Norway, Austria, and Denmark while also exploring a strategic path forward to fully exit the European region.
“Our goal is to accelerate our growth strategies, becoming a more focused organisation and enabling our mission to improve care in every setting.”
McKesson has not included the remaining European businesses in the UK, Norway, Austria and Denmark in the transaction, and will be operated by the company.
However, the US-based firm is committed to exploring strategic alternatives for all the remaining businesses in Europe and focusing on future investments outside of Europe.
Also, McKesson is expected to retain its minority equity stake in its joint venture with Walgreens Boots Alliance in Germany.
The company said that the transaction will help streamline its business and investments in the areas where it has deep expertise and is part of its long-term growth strategy.
In January last year, McKesson completed the previously announced sale of its Patient Care Solutions (PCS) business to home medical equipment (HME) provider AdaptHealth.
