Healthcare giant McKesson Corp. on Friday announced it will pay $466 million cash to acquire the pharmaceutical distribution of UDG Healthcare.
The San Francisco-based technology and pharmaceutical distribution conglomerate will purchase Ireland-based United Drug and Northern Ireland-based United Drug Sangers, both drug wholesalers, along with Irish home healthcare provider TCP and MASTA, a U.K.-based travel healthcare business.
McKesson will absorb over 1,000 UDG employees in the deal, which is expected to close in the first half of 2016.
The business will be reported as a part of McKesson's international pharmaceutical distribution and services business, overseen by Marc Owen, chairman of Celesio, the European business within its distribution segment.
“We have made this investment as part of our growth strategy, which leverages the positive trajectory of the wider healthcare sector in Europe,” Owen said in a statement. “This acquisition will also complement our broader portfolio of assets in both Ireland and the United Kingdom.”
McKesson also recently announced that it would acquire 281 pharmacies operated by Sainsbury's in the U.K. The company expects the transactions to be 10 to 14 cents accretive to its adjusted earnings per share.
The transaction is still subject to UDG shareholder approval and European Union competition clearance, among other customary closing conditions.
McKesson reported $47.5 billion in revenue in the quarter ended June 30, and $576 million in profit.