McKesson buys Rexall

SAN FRANCISCO, California—Prescription drug distributor McKesson Corp. is buying Canadian pharmacy operator Rexall Health from Katz Group for $2.2 billion, strengthening McKesson’s Canadian pharmaceutical supply chain.

The deal would be worth about $1.9 billion after tax benefits. It is expected to close late this year.

San Francisco-based McKesson will acquire about 470 of Rexall’s retail pharmacies, bolstering its Canadian operations and bringing the number of employees at its Canadian unit to 13,000.