Aurelius Healthcare Sdn Bhd has acquired McKesson UK in a corporate carve-out from the Irving, Texas-based healthcare company McKesson Corporation for £477 million (equivalent to $649 million). The deal will be completed by Aurelius’ newly launched co-investment structure with Aurelius European Opportunities Fund IV controlling a 70% stake and Aurelius Equity Opportunities SE & Co KGaA controlling 30%. The transaction is expected to close in Q1 2022.
Millions across the United Kingdom rely on McKesson UK’s services. The Coventry, United Kingdom-based company provides integrated healthcare services to the NHS, specializing in medicines, pharmaceutical care and primary care patient services. McKesson’s portfolio includes wholesale pharmaceuticals distributor AAH Pharmaceuticals and Lloyds Pharmacy, the largest community pharmacy network in the United Kingdom with more than 1,400 pharmacies as of December 2020. McKesson UK generated over £5 billion (equivalent to $6.8 billion) in revenues during 2020.
Aurelius specializes in tertiary and private healthcare management with comprehensive medical and management experts to deliver world-class healthcare solutions. The company has a proven track record in assisting companies to deliver on their growth potential and has plans to support McKesson UK by further investing in and growing each of its business divisions.
“As we explore strategic options to fully exit Europe, this transaction provides our UK operation with the best path forward to achieve its long-term growth potential, while allowing McKesson to focus future investments in strategic growth areas outside of Europe,” McKesson CEO Brian Tyler said in the press release announcing the deal.
This has been a busy year for McKesson, which in July sold its European businesses in France, Italy, Ireland, Portugal, Belgium and Slovenia to the PHOENIX Group. Included in the same transaction was McKesson’s German-based AG headquarters in Stuttgart, Recucare, its German wound-care business, its shared services center in Lithuania and its 45% ownership stake in Brocacef, McKesson’s joint venture in the Netherlands.
Aurelius was advised by Rothschild & Co. (Corporate Finance), PwC and FRP Advisory (Financial), Interpath (Tax), Mayer Brown and DLA Piper (Legal), Cardano (Pensions), Kearney (IT) and Mansfield (Commercial).
