M&A Deal Summary

Lilly Acquires PCS Health Systems

On July 12, 1994, Lilly acquired healthcare services company PCS Health Systems from McKesson for 4.4B USD

Acquisition Highlights
  • This is Lilly’s 3rd transaction in the Healthcare Services sector.
  • This is Lilly’s 4th largest (disclosed) transaction.
  • This is Lilly’s 7th transaction in the United States.
  • This is Lilly’s 1st transaction in Arizona.
Investment Fate
  • PCS Health Systems was divested to a consortium of strategic buyers in 1998 for 1.5B USD.
  • PCS Health Systems was divested to a consortium of buyers in 2000 for 1.0B USD.

M&A Deal Summary
Date 1994-07-12
Target PCS Health Systems
Sector Healthcare Services
Buyer(s) Lilly
Sellers(s) McKesson
Deal Type Divestiture
Deal Value 4.4B USD

Target

PCS Health Systems

Scottsdale, Arizona, United States
PCS Health Systems, Inc. is a pharmacy benefit manager, providing drug and health management solutions for health plans and patients. As America's premier pharmaceutical care system, PCS works to encourage proper drug use and helps to lower the cost of drugs for its clients. PCS manages and monitors approximately 300 million individual prescriptions each year representing $10 billion in drug expenditures.

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Buyer(S) 1

Buyer

Lilly

Indianapolis, Indiana, United States
Category Company
Founded 1876
Sector Life Science
Employees43,000
Revenue 34.1B USD (2023)
DESCRIPTION
Entrance to Eli Lilly's campus in Indianapolis, Indiana.
Entrance to Eli Lilly's campus in Indianapolis, Indiana.

Lilly discovers, develops, manufactures, and markets products in two business segments—human pharmaceutical products and animal health products. The mission of its human pharmaceutical business is to make medicines that help people live longer, healthier, more active lives. Most of the products Eli Lilly sells were discovered or developed by its own scientists, and the Company's success depends to a great extent on its ability to continue to discover, develop, and bring to market innovative new medicines. Eli Lilly's animal health business, operating through its Elanco division, develops, manufactures, and markets products for both food animals and companion animals. Eli Lilly manufactures and distributes its products through facilities in the US, Puerto Rico, and 11 other countries. Lilly was founded in 1876 and is based in Indianapolis, Indiana.

DEAL STATS #
Overall 7 of 34
Sector (Healthcare Services) 3 of 3
Type (Divestiture) 1 of 6
State (Arizona) 1 of 1
Country (United States) 7 of 29
Year (1994) 1 of 1
Size (of disclosed) 4 of 20
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
1994-06-21 Guidant

Indianapolis, Indiana, United States

Guidant Corporation pioneers lifesaving technology, giving an opportunity for better life today to millions of cardiac and vascular patients worldwide. The company, driven by a strong entrepreneurial culture of more than 10,000 employees, develops, manufactures and markets a broad array of products and services that enable less invasive care for some of life's most threatening medical conditions.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
1995-01-06 Pacific Biotech

San Diego, California, United States

Pacific Biotech, Inc., is a developer and marketer of rapid diagnostic tests for the detection of pregnancy and infectious diseases such as strep throat, vaginal infections and mononucleosis.

Sell $4M

Seller(S) 1

SELLER

McKesson

Irving, Texas, United States
Category Company
Founded 1833
Sector Information Technology
Employees45,000
Revenue 309.0B USD (2024)
DESCRIPTION
McKesson office in The Woodlands, Texas.
McKesson office in The Woodlands, Texas.

McKesson is a health care services and information technology company. McKesson helps its customers improve their financial, operational, and clinical performance with solutions that include pharmaceutical and medical-surgical supply management, health care information technology, and business and clinical services. McKesson was founded in 1833 and is based in Irving, Texas.

DEAL STATS #
Overall 1 of 19
Sector (Healthcare Services) 1 of 4
Type (Divestiture) 1 of 19
State (Arizona) 1 of 1
Country (United States) 1 of 10
Year (1994) 1 of 1
Size (of disclosed) 1 of 5
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
1972-01-01 PCS Health Systems

Scottsdale, Arizona, United States

PCS Health Systems, Inc. is a pharmacy benefit manager, providing drug and health management solutions for health plans and patients. As America's premier pharmaceutical care system, PCS works to encourage proper drug use and helps to lower the cost of drugs for its clients. PCS manages and monitors approximately 300 million individual prescriptions each year representing $10 billion in drug expenditures.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
1996-01-01 Aesynt

Cranberry Township, Pennsylvania, United States

Aesynt, Inc. provider of pharmacy automation and information management tools. The Company partners with healthcare organizations to fully optimize all medication forms enterprise-wide, driving cost reductions and improved patient safety. With major solutions for sterile compounding, enterprise-wide inventory management and medication dispensing, Aesynt is committed to developing innovative solutions to solve the most pressing challenges for the Company’s global healthcare partners.

Buy $65M
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