Jan. 23, 2014, 5:07 PM
- McKesson (MCK) reaches an agreement to buy Celesio (CAKFF) just 10 days after a failed tender offer for the rival company.
- MCK acquires majority owner Franz Haniel & Cie's entire holding in Celesio for €23.50/share, the same price as its previous bid, and purchases Celesio convertible bonds from hedge fund Elliott Management; the moves provide MCK with more than 75% ownership of Celesio’s shares.
- MCK has been seeking to expand, and Celesio has 132 wholesale branches supplying 65,000 pharmacies and hospitals across Europe.
- MCK +2.9% AH.
Jan. 23, 2014, 8:17 AM
- Franz Haniel & Cie, which owns 50.01% in Celesio (CAKFF), could be trying to revive the sale of the German drug distributor to Mckesson (MCK) after the U.S. company fell short of gaining shareholder acceptance for the deal last week.
- Reuters reports that Haniel has offered Elliott €23.50 for its shares - the same amount that Mckesson bid - although it's not clear how much Haniel would pay for the hedge fund's convertible bonds in Celesio.
- It's also not clear if Haniel is acting as an intermediary for McKesson.
- On a fully diluted basis, including convertibles, Haniel owns 41.8% in Celesio and Elliot 26.7%.
- McKesson needed shareholder acceptance representing 75% of Celesio's voting rights for its bid to be authorized.
Jan. 13, 2014, 2:18 PM
- "We naturally expected shares would decline following the disappointing news," FBR's Tom Gallucci says of McKesson (MCK -4.8%), in the wake of the company's failed bid for Celesio (CAKFF).
- Nevertheless, Gallucci says MCK is "well positioned going forward [as] the company's core operations have been the best performing in the sector over the past year."
- Outperform rating maintained.
Jan. 13, 2014, 1:04 PM
- Reopened for trade, McKesson (MCK -6.7%) gives back about all of last week's gains following its failed bid for Celesio (CAKFF -1%).
- CEO John Hammergren: "We are well positioned and will continue to explore and evaluate opportunities to further strengthen our businesses through our disciplined approach to capital allocation.”
Jan. 13, 2014, 12:59 PM
Jan. 9, 2014, 7:03 AM
- As flagged, McKesson (MCK) has increased its bid for German peer Celesio (CAKFF) to €23.50 a share from €23 as it looks to win support for the deal from Elliott Management.
- The U.S. hedge fund, which owns almost 25% of Celesio, had opposed the original offer as being too low but has agreed to sell its convertible bonds to McKesson.
- The tender offer is now valued at around €4B ($5.4B) and expires at midnight tonight in Frankfurt. McKesson has made its proposal conditional on obtaining at least 75% of Celesio's shares. (Previous) (PR)
- Update: Elliot says that two of its funds have agreed to sell their convertible bonds and shares in Celesio; from McKesson's press release, it wasn't clear what the status of the Elliot-held stock would be.
Jan. 9, 2014, 3:52 AM
- McKesson (MCK) has reportedly increased its bid for German peer Celesio to €23.50 a share from €23 in order to try to persuade hedge fund Elliot International to support the offer from the U.S. drugs wholesale group.
- Elliot, which owned a 22.7% voting stake in Celesio as of late December, rejected McKesson's initial proposal as being too low.
- McKesson has made its offer conditional on obtaining at least 75% of Celesio's shares by tonight. It has already agreed to buy 50.01% from diversified holding company Franz Haniel & Cie. (Previous)
Jan. 8, 2014, 8:57 AM
- McKesson (MCK +2.3%) is reportedly preparing to offer concessions to hedge fund Elliott International so that the latter will support the U.S. pharmaceutical distributor's $8.3B bid for German peer Celesio.
- McKesson has made its proposal conditional on obtaining at least 75% of Celesio's shares - including those from the convertible debt - by tomorrow night. McKesson has already agreed to buy 50.01% of Celesio from diversified holding company Franz Haniel & Cie.
- As of late December, Elliot owned a 22.7% voting stake in Celesio.
Dec. 25, 2013, 1:30 PM
- "We believe the most likely way this happens is for McKesson (MCK) and Elliott (or their intermediaries) to find a common ground whereby MCK raises its bid subject to Elliott agreeing to tender all of its holdings," Deutsche's George Hill says, referencing MCK's offer for Celesio.
- Hill thinks that after the "tough talk" is over and the deal is done, the potentially sweetened bid "could shave $0.15-0.20 off of MCK's fully consolidated near-term deal accretion estimates of $1.00-1.25."
- "MCK shares likely have 10% downside risk if the deal breaks to $140-145 per share," Hill adds.
- For more, see here.
Oct. 24, 2013, 9:40 AM
- Leerink weighs in on McKesson's (MCK +6.4%) deal for Celesio.
- "It appears MCK will be acquiring all of Celesio, which we view favorably, since it will give the company [the] operational control necessary to drive synergies," analyst David Larsen says, adding that "the benefits of the deal include increased supply chain efficiency and global sourcing, global distribution and logistics capabilities that bring new value and service to manufacturing partners, innovative technology and business services and efficiencies."
- MCK upgraded to Outperform from Market Perform.
- Price target is $170.
- Also: MCK tops estimates for Q2
Oct. 24, 2013, 2:02 AM
- McKesson (MCK) has agreed to acquire a 50.01% stake in German peer Celesio from diversified holding company Franz Haniel & Cie. The U.S. pharmaceuticals distributor will also launch an offer for Celesio's remaining traded shares and convertible bonds, with the whole deal valued at $8.3B. Celesio has welcomed the offer.
- McKesson is offering €23 a share for Celesio in a bid that represents a 43% premium over the latter's stock price in June, when speculation started that Franz Haniel might sell its stake.
- McKesson said the transaction will help improve its supply chain efficiency; the deal could also strengthen the company's purchasing power, especially with generic drug makers. (PR)
Oct. 22, 2013, 2:44 PM
Oct. 8, 2013, 6:04 AM
- U.S. drug distributor McKesson (MCK) is reportedly in advanced negotiations to acquire German peer Celesio for over €3.74B ($5.08B), or €5.38B when including debt.
- McKesson is holding negotiations with Celesio's majority shareholder, the Franz Haniel & Cie holding company, which would tender its stake.
- A deal would increase McKesson's leverage with global pharmaceutical companies, and would follow Walgreen's purchase last year of a 45% stake in U.K.-based Alliance Boots for $6.7B.
Jun. 6, 2013, 8:44 AMOmnicare's (OCR) recent adoption of a Change in Control Plan (8-K) has Credit Suisse thinking the company could be a takeout candidate as "such action has signaled potential outside interest" in the past. While the move is "probably a routine corporate governance action," improved Long-Term Care performance and swift Specialty growth make the company a decent buyout candidate for the likes of McKesson (MCK) and Cardinal Health (CAH), analyst Glen Santangelo says. | Comment!
Oct. 25, 2012, 11:36 AMShares of athenahealth (ATHN -2.1%) dip on the back of today's earlier announcement that PSS Worldwide (PSSI +33%) had agreed to be acquired by McKesson (MCK +4%). PSSI currently sells ATHN's services to physicians, and investors appear to be concerned that the relationship is likely to be derailed over the long-term, despite MCK's assertion that it doesn't plan to immediately "distort or dismantle" any of PSS's relationships "without careful evaluation." | Comment!
Oct. 25, 2012, 9:46 AMISI analyst Ross Muken likes McKesson's (MCK) acquisition of PSS World Medical. It's "not particularly expensive," and it "allows McKesson to help sustain margins in the medical distribution market." Overall, "it is a good use of shareholder capital." The deal will add $0.20-$0.25 a share to McKesson's FY earnings next year, Muken says. McKesson +3.3%. | Comment!
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