Supplier News Breaks Archives
Private equity firm to buy McKesson Automation
October 16th, 2013
SAN FRANCISCO – Francisco Partners, a technology-focused private equity firm, plans to acquire McKesson Automation, a unit of McKesson Corp. that provides integrated pharmacy automation solutions to hospitals and health systems.
Francisco Partners said Wednesday that the transaction, terms of which weren't disclosed, is expected to close this quarter, pending customary closing conditions.
The company noted that McKesson previously announced its intent to divest McKesson automation, which will operate under a new name after the transaction closes.
"McKesson Automation is highly regarded in the health care industry for its systemwide approach to and deep understanding of the medication delivery process," stated 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 Corp. to ensure that the companies' collective solutions for hospitals and health care providers are complementary and effective."
Based in Pittsburgh, McKesson Automation helps hospitals and health systems streamline the delivery of medications, from the distribution source to the patient. It offers products addressing every stage of medication delivery within a hospital, including pharmacy, nursing and surgical services.
"Hospitals today face tremendous challenges, from intensifying payment and cost pressures to evolving regulatory standards, changing demographics, and quality of care measures," commented 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 stand-alone 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."