Tuesday, January 18, 2011

Sale of Katz Group 'might be approaching': analyst

From the Edmonton Journal:
Amid the shakeout in drug regulation across Canada, a CIBC World Markets analyst is theorizing that Edmonton-based drugstore chain Katz Group Canada Ltd. may be for sale and that Jean Coutu Group Inc. would be a logical buyer.

"We have speculated for quite some time that Katz Group could be for sale, and would not be surprised if U.S.-based players, both wholesale and retail, are already kicking the tires," analyst Perry Caicco writes in a research note on Jean Coutu published Jan. 9.

"With reduced profitability and remaining uncertainty about drug reforms in certain provinces, most notably Alberta, the time for a Katz Group deal might be approaching."

Jean Coutu and the Katz Group declined to comment Tuesday.

Katz is one of Canada's largest privately held companies, with more than 1,800 drugstore outlets across the country under the banners Rexall, PharmaPlus, Guardian and IDA. It is controlled by Edmonton businessman Daryl Katz and his family. Katz also owns the Edmonton Oilers. ...more

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