Francisco Partners has signed an agreement to acquire McKesson Automation, a provider of pharmacy automation services and a unit of McKesson Corporation. McKesson Corporation previously announced its intent to divest this division, which will operate under a new name after the transaction closes. The transaction is expected to close by the end of the fourth quarter.
McKesson Automation offers pharmacy automation services to hospitals and health systems. The business offers a range of products addressing every stage of medication delivery within a hospital, including pharmacy, nursing and surgical services. McKesson Automation is based in Pittsburgh (click HERE for the McKesson Automation web page).
“McKesson Automation is highly regarded in the healthcare industry for its system-wide approach to and deep understanding of the medication delivery process,” said Chris Adams, a principal at Francisco Partners. “We are excited to work closely with the existing leadership team to expand the automation business as a standalone company. We will maintain a close working relationship with McKesson Corporation to ensure that the companies’ collective solutions for hospitals and healthcare providers are complementary and effective.”
Francisco Partners makes investments in technology companies with transaction values ranging from $50 million to $2 billion. Transaction structures include buyouts, divisional divestitures, recapitalizations, restructurings and growth equity financings. Francisco Partners is headquartered in San Francisco (www.franciscopartners.com).
“Hospitals today face tremendous challenges – from intensifying payment and cost pressures to evolving regulatory standards, changing demographics, and quality of care measures,” said Kraig McEwen, president of McKesson Automation. “At McKesson Automation, we are developing technology solutions that help hospitals and health systems effectively manage these changes while improving patient care and outcomes. As a standalone company and with the financial and operational resources that Francisco Partners offers, we will have the ability to further our commitment to continuously advance medication delivery.”
© 2013 PEPD • Private Equity’s Leading News Magazine • 10-16-13
