Katz selling Rexall chain

[joestevens29]

http://globalnews.ca/news/2552480/k...all-health-drugstore-chain-in-3-billion-deal/

Edmonton-based Katz Group has agreed to sell the Rexall Health drugstore chain, including its 470 retail pharmacies, in a C$3-billion deal with San Francisco-based health care company McKesson.

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[Gord]

http://globalnews.ca/news/2552480/k...all-health-drugstore-chain-in-3-billion-deal/

Edmonton-based Katz Group has agreed to sell the Rexall Health drugstore chain, including its 470 retail pharmacies, in a C$3-billion deal with San Francisco-based health care company McKesson.

I just heard about this 10 minutes ago. wasn't sure if it was new news or I was way out of the loop.

I think it's a smart business move for him.

 

[The Nuge]

Well he certainly won't be short on cash now

 

[joestevens29]

Well he certainly won't be short on cash now

I brought up awhile back with the dollar there could be a time where Katz starts to cut salaries, but I was told as long as he owns Rexall he'll be okay as people always need drugs.

He has a lot of cash now, but a few bad investments and who the hell knows. Think I prefer him with the money making business rather than the money that could potentially disappear.

 

[Jimmi McJenkins]

Good deal and work for Katz, build up that empire and sell it for $3B, impressive.

Probably lets him focus on the OEG more thoroughly.

 

[FiveFourteenSixOne]

I brought up awhile back with the dollar there could be a time where Katz starts to cut salaries, but I was told as long as he owns Rexall he'll be okay as people always need drugs.

He has a lot of cash now, but a few bad investments and who the hell knows. Think I prefer him with the money making business rather than the money that could potentially disappear.

From a "financial security of the Oilers" standpoint, I agree with you. It just feels safe to have an owner with a chain of revenue generating pharmacies.

 

[Young Lions*]

Good deal and work for Katz, build up that empire and sell it for $3B, impressive.

Probably lets him focus on the OEG more thoroughly.

Oh no.

 

[Hemsky is a gangsta]

Really sad news. Farewell Rexall.

 

[Jimmi McJenkins]

Oh no.

Ok then

 

[popo]

Assuming the sale of Rexall does little to effect Edmonton itself though. It is HQ'd out of Mississauga, and there was never any potential of moving here. So the sale shouldn't cost any jobs locally. Even the local naming rights at the Coliseum were likely expiring next year.

 

[Paralyzer]

It would not surprise me the least if Katz invested his money into Rogers and became a minority holder for them. With him owning Silver Pictures, he does have some media understanding. This will be interesting.

 

[BlowbyBlow]

Assuming the sale of Rexall does little to effect Edmonton itself though. It is HQ'd out of Mississauga, and there was never any potential of moving here. So the sale shouldn't cost any jobs locally. Even the local naming rights at the Coliseum were likely expiring next year.

It's just renaming the place, jobs don't leave unless it becomes a whole new business entirely.

 

[The Nuge]

It would not surprise me the least if Katz invested his money into Rogers and became a minority holder for them. With him owning Silver Pictures, he does have some media understanding. This will be interesting.

I bet the league would fight that pretty hard. You can't have a guy owning 2 teams in the league, even if it's just part of the one

I brought up awhile back with the dollar there could be a time where Katz starts to cut salaries, but I was told as long as he owns Rexall he'll be okay as people always need drugs.

He has a lot of cash now, but a few bad investments and who the hell knows. Think I prefer him with the money making business rather than the money that could potentially disappear.

Very true. Even if he did go broke though, with McDavid and a new rink, there'd be a lot of people that would want to buy the Oilers

 

[CantHaveTkachev]

whats he gonna do now? meddle in the Oilers now?

 

[Raab]

Katz isn't stupid, he'll reinvest that 3B into something else. Will be interesting to see what business he gets into next.

 

[McDeathbyCheerios*]

I bet the league would fight that pretty hard. You can't have a guy owning 2 teams in the league, even if it's just part of the one



Very true. Even if he did go broke though, with McDavid and a new rink, there'd be a lot of people that would want to buy the Oilers

What team does Rogers own?

 

[oXo Cube]

Doubt this will mean much in the context of the Oilers. For it to matter, Katz would first have to waste all of that $3B, which is incredibly unlikely, and then he would also have to be allowed to sell the team to a new owner that is allowed out of the 20 year commitment to Edmonton clause that came with the arena deal.

That also assumes he would even want to sell it to someone who would move the team, which doesn't make a lot of sense either given that they are his primary tenant.

 

[Raab]

What team does Rogers own?

Part owner of Toronto, I believe.

 

[The Nuge]

What team does Rogers own?

Rogers and Bell own 75% of the Leafs

 

[Digger12]

I don't know nearly enough about Katz's finances to make an informed decision on if this should be considered a good thing or not. Hopefully it's just him turning a tidy profit on something he bought on the cheap some years back.

Even if it heralds a sign that he's having financial issues, with that building I highly doubt he'd have any shortage of buyers for the Oilers when he eventually chooses to sell the team.

 

[oilphan]

I brought up awhile back with the dollar there could be a time where Katz starts to cut salaries, but I was told as long as he owns Rexall he'll be okay as people always need drugs.

He has a lot of cash now, but a few bad investments and who the hell knows. Think I prefer him with the money making business rather than the money that could potentially disappear.

This is silly. He owns probably half of the real estate of the pharmacies he sold locked up for 20 years each. Talk about money making business. He also owns a tonne of other real estate around the NA in addition to his other media, and entertainment businesses. I would bet a lot of $ on him leveraging his cash into way more wealth than he would have milking the business for cash it generated.

 

[VainGretzky]

Katz isn't stupid, he'll reinvest that 3B into something else. Will be interesting to see what business he gets into next.

He sold of his 1st set of chains for 900 million which went into Ice distriic developments quite obvious then he was moving into real estate holdings and developing.

 

[iCanada]

I don't think it matters.

Literally with 3 billion he makes 120 million yearly on an investment with utter **** returns (4% after inflation). The market nearly doubles that.

As long as he keeps his portfolio diverse enough to absorb a few failures, his portfolio alone should be able to just buy random crap and meet Market average returns through the law of averages.

I don't think there is any cause for concern.

 

[Paralyzer]

I bet the league would fight that pretty hard. You can't have a guy owning 2 teams in the league, even if it's just part of the one



Very true. Even if he did go broke though, with McDavid and a new rink, there'd be a lot of people that would want to buy the Oilers

Well, Rogers the Media side. Not the teams they own. You can invest into a certain sector of a business. Look at Shaw and Shaw Media. Shaw Media was sold to Corus Radio.

 

[Beerfish]

Katz isn't stupid, he'll reinvest that 3B into something else. Will be interesting to see what business he gets into next.

Like perhaps a smart capital investment in a new arena in which he has total control of all revenue streams for his empire? Shrewd indeed!