Birch Hill Equity Partners has agreed to acquire the Rexall drugstore chain from McKesson for an undisclosed price.

Mississauga, Ont.-based Rexall operates 385 pharmacies across Canada and has 8,000 employees. Founded in 1904, Rexall ranks among Canada’s oldest companies.

“Understanding the valuable role pharmacies play in local communities, Birch Hill is committed to maintaining and investing in reliable, accessible healthcare services to expand Rexall’s current network of pharmacies across Canada,” said the company in a news release.

The definitive agreement also calls for Birch Hill, a mid-market private-equity firm based in Toronto, to acquire online retailer Well.ca.

“This transaction marks an important milestone aligned to our enterprise strategy, advancing our strategic priorities, further streamlining our business and prioritizing investment in our growth areas of oncology and biopharma services,” said Brian Tyler, Irving, Tex.-based McKesson’s CEO, in a separate news release.

“We remain fully committed to and confident in the strength of our Canadian distribution and biopharma businesses.” 

If all goes according to plan, McKesson will remain Rexall and Well.ca’s wholesale distribution supplier

McKesson bought the Rexall chain in 2016 from the Katz Group, headed by Edmonton Oilers owner Daryl Katz, for $2.9 billion.

Birch Hill has $5 billion in capital under management. Its holdings include Montreal-based hockey equipment manufacturer CCM. The Globe and Mail has reported that Birch Hill intends to sell CCM.

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