Add-on Acquisition • Medical Products

McKesson Acquires GMD Distribution

On April 3, 2017, McKesson acquired medical products company GMD Distribution from HKW

Acquisition Context
  • This is McKesson’s 7th transaction in the Medical Products sector.
  • This is McKesson’s 6th transaction in Canada.
  • This is McKesson’s 3rd transaction in Ontario.

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M&A Deal Summary

Date April 3, 2017
Target GMD Distribution
Sector Medical Products
Buyer(s) McKesson
Sellers(s) HKW
Deal Type Add-on Acquisition
Advisor(s) Taft Stettinius & Hollister (Legal)

Target Company

GMD Distribution

Oakville, Ontario, Canada
GMD is a distributor to the Canadian pharmaceutical industry, specializing in supplying specialty ophthalmic pharmaceuticals to clinics across Canada. GMD develops customized programs for a variety of clients that enable the direct distribution of pharmaceuticals and other healthcare products to Canadian pharmacies and clinics.
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Buyer Overview 1

Buyer

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 that 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 Context for Buyer #
Overall 47 of 52
Sector: Medical Products 7 of 8
Type: Add-on Acquisition 38 of 42
State: Ontario 3 of 4
Country: Canada 6 of 7
Year: 2017 2 of 4
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2017-01-26 CoverMyMeds

Twinsburg, Ohio, United States

CoverMyMeds LLC is a provider of software suite which automates the medication prior authorization process for more than 500 electronic health records (EHR) systems, 47,000 pharmacies, 700,000 providers and most health plans and PBMs. By ensuring appropriate access to medications, the company helps its customers avoid billions of dollars each year in administrative waste and avoidable medical spending caused by prescription abandonment.

Buy $1.4B
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2017-08-03 McKesson - Enterprise Information Solutions Business

San Francisco, California, United States

McKesson Corp. - Enterprise Information Solutions Business includes a robust set of clinical and financial solutions supporting the full scope of care delivery processes — including Paragon (EHR solution); STAR and HealthQuest (Revenue Cycle solutions); Lab Analytics and Blood Bank; and OneContent (Content Management solutions).

Sell $185M

Seller Profile 1

SELLER

HKW

Indianapolis, Indiana, United States

Investor Investor Investor Investor


Category Private Equity Firm
Founded 1903
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

Hammond Kennedy Whitney & Company (HKW) is a private equity firm focused on making control investments in mid-sized, 'market leading' companies generating sales of $5 to $75 million. HKW looks for companies with low risk for technological obsolescence, defined growth strategies, and talented management who want to own equity. Target transaction situations include industry consolidations, corporate divestitures, generational changes in ownership, growth equity, management buy-outs and recapitalizations. HKW prefers North American based opportunities. HKW dates back to 1903, however the Firm transitioned from sole to institutional investors in 2001. The Firm has offices in Indianapolis and New York City.


Deal Context for Seller #
Overall 27 of 38
Sector: Medical Products 3 of 3
Type: Add-on Acquisition 14 of 19
State: Ontario 2 of 3
Country: Canada 2 of 8
Year: 2017 1 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2016-12-20 Workhorse Rail

Pittsburgh, Pennsylvania, United States

Workhorse Rail LLC is a designer and supplier of freight car parts for the North American rail industry.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2017-08-28 Allied Vision Group

Ft. Lauderdale, Florida, United States

Allied Vision Group is a distributor of contact lenses, optical products, and pet medication products. Allied Vision Group was founded in 1989 and is based in Ft. Lauderdale, Florida.

Buy -