CALGARY -- The Edmonton-based Katz Group has agreed to sell the Rexall Health drugstore chain, including its 470 retail pharmacies, in a C$3-billion deal with U.S. health care company McKesson.
McKesson says the friendly deal is the next natural step to take in the relationship between the two companies, which have worked together for 20 years.
The San Francisco-based firm previously acquired Katz's independent outlets and franchise businesses -- primarily operating as I.D.A. and Guardian -- for about C$920 million in 2012.
McKesson Canada -- which was founded more than 100 years ago -- says it would have about 13,000 employees after the Rexall deal closes.
The deal is expected to close later this year.
The companies say Rexall Health will continue to be led by its current management, headed by CEO Jurgen Schreiber.
The founder and chairman of Katz Group, Daryl Katz, says his company will continue to invest in its three other types of business -- real estate, sports and entertainment, and investments.
"I have the utmost confidence that Rexall Health will continue to flourish under McKesson's ownership and Jurgen Schreiber's continued leadership," Katz said in a joint statement with McKesson.
