McKesson acquires Sterling Medical

Sunday, February 19, 2006

MOORESTOWN, N.J. - McKesson agreed last week to acquire Sterling Medical, the U.S. unit of Denmark medical supply maker Coloplast.

Sterling is a national provider of wound care, ostomy, diabetes and incontinence supplies.

"Sterling's focus on serving the supply needs of homecare patients with chronic illnesses is a perfect complement to McKesson's growing homecare business," said Gary Muensterman, president of McKesson Medical-Surgical.

"The combination of Sterling's direct-to-patient distribution and billing capabilities and McKesson's national distribution footprint for home healthcare agencies and home medical equipment/durable medical equipment providers will create synergies that will benefit providers, payers and patients," added Muensterman. "This will ultimately improve the quality of care and create a more efficient model for serving patients in the home."

The acquisition is expected to close in McKesson's 2007 fiscal year, subject to customary conditions. Upon completion, Sterling will become part of McKesson Medical-Surgical's homecare business.

Terms of the agreement were not disclosed.

In addition to the Sterling acquisition, McKesson and Coloplast have signed a long-term supply agreement whereby McKesson will distribute Coloplast's ostomy and incontinence care products.