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Biotech / Medical : McKesson HBOC (MCK)
MCK 589.95-0.2%Jun 14 4:00 PM EDT

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To: Rob Pierce who wrote ()1/11/2000 10:24:00 AM
From: Paul Lee  Read Replies (1) of 165
 
McKesson HBOC, Inc., Signs Definitive Agreement to Sell Its Water Products Business to Groupe DANONE for $1.1 Billion
SAN FRANCISCO--(BUSINESS WIRE)--Jan. 11, 2000--McKesson HBOC, Inc. (NYSE:MCK - news; McKessonHBOC) announced today that it has signed a definitive agreement with the Groupe DANONE (NYSE:DA - news) whereby DANONE will purchase the McKesson Water Products Company, a subsidiary of McKessonHBOC, for a total consideration of $1.1 billion in cash.

The transaction has been approved by the Boards of Directors of both companies and is subject to regulatory review and other customary conditions.

The McKesson Water Products Company is the third-largest processor, marketer and distributor of bottled water in the United States. The company markets bottled water in 30 states under the Sparkletts©, Alhambra© and Crystal(TM) brands. McKesson Water Products has expected revenues of more than $380 million with an EBITDA margin of 22% in its fiscal year ended March 31, 1999.

``Given our strategic focus on improving healthcare quality and cost through our market-leading positions in healthcare information technology and supply management, McKesson Water Products was not a core business,' said John H. Hammergren and David L. Mahoney, McKessonHBOC co-presidents and co-chief executive officers.

``We believe that this transaction is in the best interests of both our shareholders and the Water Products Company employees who have created significant value in this business. We wish them well as they become a key element of DANONE's U.S. bottled water business
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