Latest news with #NewCo
Yahoo
21-05-2025
- Business
- Yahoo
Star Equity Holdings and Hudson Global Sign Definitive Merger Agreement
OLD GREENWICH, Conn., May 21, 2025 (GLOBE NEWSWIRE) -- Star Equity Holdings, Inc. ('Star') (Nasdaq: STRR; STRRP) and Hudson Global, Inc. ('Hudson') (Nasdaq: HSON) (the 'Companies'), announced today the signing of a definitive merger agreement (the 'Merger'). Pursuant to the Merger, Star will merge with and into a wholly owned subsidiary of Hudson to form 'NewCo'. Prior to signing this Merger agreement, both Companies' Boards of Directors established independent special committees to evaluate the benefits of the potential Merger. While the terms of the Merger have been approved by both special committees and each of the Companies' respective Boards of Directors, closing is subject to regulatory approvals as well as the affirmative votes of Hudson and Star shareholders at their respective shareholder meetings to be held later this year. The Boards of Directors of Hudson and Star have recommended that the respective shareholders of HSON and STRR vote FOR the Merger at these meetings. Transaction Highlights Scale: Creates larger multi-sector holding company (with pro-forma annualized revenues of $210 million) on better path to eventually getting added to the Russell 2000 index. Profitability: NewCo goal of $40 million in Adjusted EBITDA by 2030. Synergies: At least $2 million of annualized cost savings projected within 12 months of the completion of the Merger, equating to approximately $0.57 in incremental pro-forma EPS. NOL Utilization: NewCo more likely to utilize its $240 million (1) US Federal net operating losses ('NOL') than Hudson standalone. Owner Mindset: Board and management currently own approximately 24% (2) of NewCo's pro-forma shares outstanding and expect to own more over time. Greater revenue diversity by constituting NewCo as a holding company and adding new business segments from Star. Increased ability to finance growth, including acquisitions, by leveraging NewCo's strong pro-forma balance sheet and credit profile. Increased ability to monetize or raise capital for NewCo's business units at private market values. Transaction Details The Merger will be a stock-for-stock transaction. Star will merge with and into a wholly owned subsidiary of Hudson, and Hudson will be the surviving public entity. Hudson will acquire all the outstanding common and preferred shares of Star, issuing 0.23 shares of HSON common stock for each share of STRR common stock, approximately in line with the 20-day VWAP trading ratio between the two stocks. Hudson will issue preferred stock with identical terms to Star's preferred stock to be exchanged on a one-for-one basis. Upon completion of the Merger, Hudson shareholders will own approximately 79% of NewCo, and Star shareholders will own approximately 21% of NewCo's estimated 3.49 million shares outstanding. Pending regulatory and shareholder approvals, the Merger is anticipated to close in the second half of 2025. Jeff Eberwein, CEO of Hudson, said, 'We are pleased to announce the signing of this merger agreement, a combination we believe will create more shareholder value than either company could achieve independently. We expect NewCo's operating businesses to flourish inside NewCo's holding company structure, as time and resources previously spent on public company and corporate matters can now be dedicated to organic and inorganic growth opportunities at the operating level. We believe the cost savings and diversification of revenue streams will provide considerable value to shareholders.' Rick Coleman, Star's CEO, noted, 'Since Star converted to its holding company structure in 2019, our goal has been to acquire attractive businesses, either to complement our existing platforms, or to establish new growth platforms. While we have completed and continue to work on various M&A initiatives, this transaction is transformative for Star. Star's shareholders will benefit from the combined company's greater scale, profitability, and stock trading liquidity, as well as the financial advantages of increased market capitalization, and the utilization of Hudson's sizable NOL. We look forward to leveraging all of these benefits to maximize shareholder value.' Following the completion of the Merger, NewCo will have four reporting segments: Building Solutions (consisting of KBS Builders, EdgeBuilder-Glenbrook, and Timber Technologies), Business Services (Hudson RPO), Energy Services (Alliance Drilling Tools), and Investments. The Merger is expected to have no impact on clients, employees, or the brand names of any of NewCo's operating businesses. NewCo's board of directors is expected to be composed of the three independent directors from each of Hudson and Star, as well as Jeff Eberwein. NewCo management will include Jeff Eberwein as CEO and Rick Coleman as COO. As of the date of this announcement, Mr. Eberwein, Hudson's CEO, owns 455,390 (3) shares of HSON common stock, and as Executive Chairman of Star, owns 826,530 (3) shares of STRR common stock and 1,182,414 shares of STRRP preferred stock. Star's special committee was advised by Oberon Securities (financial) and Littman Krooks (legal). Hudson's special committee was advised by Houlihan Lokey (financial) and Morgan Lewis (legal). A Form 8-K related to the Merger agreement will be filed with the SEC. Interested parties can access this information by visiting the SEC website or by visiting Hudson's website or Star's website NOL CarryforwardAs of December 31, 2024, Hudson had $240 million of usable NOLs in the U.S., which the Company considers to be a very valuable asset for its stockholders. In order to protect the value of the NOL for all stockholders, Hudson has a rights agreement and charter amendment in place that limit beneficial ownership of Hudson common stock to 4.99%. Stockholders who wish to own more than 4.99% of Hudson common stock, or who already own more than 4.99% of Hudson common stock and wish to buy more, may only acquire additional shares with the Board's prior written approval. As of December 31, 2024, Star had $44.6 million of U.S. Federal and $17.6 million of state NOLs, which Star considers to be valuable assets for its stockholders. Certain of these NOLs will expire in 2025 through 2044 unless previously utilized. In order to protect the value of the NOL for all stockholders, Star has a rights agreement and charter amendment in place that limit beneficial ownership of Star's common stock to 4.99%. Stockholders who wish to own more than 4.99% of Star common stock, or who already own more than 4.99% of Star common stock and wish to increase their holdings, may only acquire additional shares with the Board's prior written approval. Conference Call DetailsHudson and Star will host a joint audio and slides conference call on Thursday, May 22, 2025, at 10:00 am ET to discuss the Merger. Live conference call: All interested persons are invited to attend the call and should dial 833-816-1383 (USA) or 412-317-0476 (International), approximately 10 minutes prior to the start of the conference call. Live Webcast: The live audio webcast of the conference call can be accessed via the Internet, on a listen-only basis on both Company's websites, or by clicking the following link: Investor Deck: The Companies will be utilizing an investor presentation as an accompaniment to the live call, which will be available by visiting Hudson's website or Star's website Investor Relations sections under Events. Archived Webcast: The online archive of the webcast will be available on each Company's website shortly after the call. About Hudson Global, Global, Inc. is a leading global total talent solutions provider operating under the brand name Hudson RPO. We deliver innovative, customized recruitment outsourcing and total talent solutions to organizations worldwide. Through our consultative approach, we develop tailored talent solutions designed to meet our clients' strategic growth initiatives. As a trusted advisor, we meet our commitments, deliver quality and value, and strive to exceed expectations. About Star Equity Holdings, Equity Holdings, Inc. is a diversified holding company with three divisions: Building Solutions, Energy Services, and Investments. Building SolutionsOur Building Solutions division operates in three businesses: (i) modular building manufacturing; (ii) structural wall panel and wood foundation manufacturing, including building supply distribution operations; and (iii) glue-laminated timber (glulam) column, beam, and truss manufacturing. Energy ServicesOur Energy Services division engages in the rental, sale, and repair of downhole tools used in the oil and gas, geothermal, mining, and water-well industries. InvestmentsOur Investments division manages and finances the Company's real estate assets as well as its investment positions in private and public companies. Forward-Looking Statements'Safe Harbor' Statement under the Private Securities Litigation Reform Act of 1995: This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements in this release that are not statements of historical fact are hereby identified as 'forward-looking statements' for the purpose of the safe harbor provided by Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking Statements include, without limitation, statements regarding (i) the plans and objectives of management for future operations, including plans or objectives relating to acquisitions and related integration, development of commercially viable products, novel technologies, and modern applicable services, (ii) projections of income (including income/loss), EBITDA, earnings (including earnings/loss) per share, free cash flow (FCF), capital expenditures, cost reductions, capital structure or other financial items, (iii) the future financial performance of the Company or acquisition targets, (iv) statements regarding the anticipated timing and benefits of the Merger and (v) the assumptions underlying or relating to any statement described above. Moreover, forward-looking statements necessarily involve assumptions on the part of the Companies. These forward-looking statements generally are identified by the words 'believe', 'expect', 'anticipate', 'estimate', 'project', 'intend', 'plan', 'should', 'may', 'will', 'would', 'will be', 'will continue' or similar expressions. Such forward-looking statements are not meant to predict or guarantee actual results, performance, events, or circumstances and may not be realized because they are based upon each Company's current projections, plans, objectives, beliefs, expectations, estimates and assumptions and are subject to a number of risks and uncertainties and other influences, many of which each Company has no control over. Actual results and the timing of certain events and circumstances may differ materially from those described above as a result of these risks and uncertainties. Factors that may influence or contribute to the inaccuracy of forward-looking statements or cause actual results to differ materially from expected or desired results may include, without limitation, Hudson's and Star's ability to complete the Merger on the proposed terms or on the anticipated timeline, or at all, including risks and uncertainties related to securing the necessary shareholder approvals and satisfaction of other closing conditions to consummate the Merger; the occurrence of any event, change or other circumstance that could give rise to the termination of the definitive transaction agreement relating to the proposed Merger; risks related to diverting the attention of Hudson and Star management from ongoing business operations; failure to realize the expected benefits of the Merger; significant transaction costs and/or unknown or inestimable liabilities; the risk of shareholder litigation in connection with the proposed Merger, including resulting expense or delay; the risk that the businesses of Hudson and Star will not be integrated successfully or that such integration may be more difficult, time-consuming or costly than expected; risks related to future opportunities and plans for NewCo following the Merger, including the uncertainty of expected future financial performance and results of the combined company; effects relating to the announcement of the acquisition or any further announcements or the consummation of the acquisition on the market price of Hudson's common stock or Star's common stock or preferred stock; the possibility that, if NewCo does not achieve the perceived benefits of the acquisition as rapidly or to the extent anticipated by financial analysts or investors, the market price of its common stock could decline; the substantial amount of debt of Star and Star's ability to repay or refinance it or incur additional debt in the future; Star's need for a significant amount of cash to service and repay the debt and to pay dividends on Star's preferred stock; the restrictions contained in the debt agreements that limit the discretion of management in operating the business of Star; legal, regulatory, political and economic risks in markets and public health crises that reduce economic activity and cause restrictions on operations or trade; the length of time associated with servicing customers; losses of significant contracts or failure to get potential contracts being discussed; disruptions in the relationship with third party vendors; accounts receivable turnover; insufficient cash flows and resulting lack of liquidity; high costs of regulatory compliance; the liability and compliance costs related to regulatory compliance, including regarding environmental regulations applicable to Star; existing or increased competition; risks to the price and volatility of the common stock of Hudson or Star and of Star's preferred stock; the ability of Hudson or Star to execute on its business strategy (including any cost reduction plans);failure to keep pace with evolving technologies and difficulties integrating technologies; system failures; losses of key management personnel and the inability to attract and retain highly qualified management and personnel in the future; the continued demand for and market acceptance of the services of Hudson and Star, as applicable; and other risks and uncertainties affecting Hudson and Star, including those described under the caption 'Risk Factors' and elsewhere in each of Hudson's and Star's Securities and Exchange Commission ('SEC') filings and reports, including Hudson's Annual Report on Form 10-K for the year ended December 31, 2024, Star's Annual Report on Form 10-K for the year ended December 31, 2024, and future filings and reports by either Company. This release reflects management's views as of the date presented. All forward-looking statements are necessarily only estimates of future results, and there can be no assurance that actual results will not differ materially from expectations, and, therefore, you are cautioned not to place undue reliance on such statements. Further, any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events. Participants in the Solicitation Hudson, Star, and their respective directors and certain of their executive officers and employees may be considered participants in the solicitation of proxies from Hudson's stockholders with respect to the proposed merger transaction under the rules of the SEC. Information about the directors and executive officers of Hudson is set forth in its Annual Report on Form 10-K for the year ended December 31, 2024, which was filed with the SEC on March 14, 2025, and in subsequent documents filed with the SEC. Information about Star's directors and officers is available in Star's Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on March 21, 2025, and in subsequent documents filed with the SEC. Additional information will be made available to you regarding the persons who may be deemed participants in the proxy solicitations and their direct and indirect interests (by security holdings or otherwise) in the Merger and related transactions in a registration statement on Form S-4 (the 'Form S-4') that will contain a joint proxy statement of Hudson and Star (the 'Proxy Statement') and prospectus, and other relevant materials, each that will be filed with the SEC and disseminated to stockholders when they become available. Instructions on how to obtain free copies of this document and, when available, the Form S-4 and Proxy Statement, are set forth below in the section headed 'Additional Information and Where to Find It'. This joint press release relates to the proposed merger transaction involving Hudson and Star and may be deemed to be solicitation material in respect of the proposed merger transaction. In connection with the proposed merger transaction, Hudson will file the Form S-4 and Proxy Statement and prospectus. This joint press release is not a substitute for the Form S-4, the Proxy Statement or for any other document that Hudson or Star may file with the SEC and or send to its stockholders in connection with the proposed merger transaction. BEFORE MAKING ANY VOTING DECISION, INVESTORS AND SECURITY HOLDERS OF HUDSON AND STAR ARE URGED TO READ THE FORM S-4, THE PROXY STATEMENT AND OTHER DOCUMENTS FILED WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT HUDSON, STAR, THE PROPOSED MERGER TRANSACTION AND RELATED MATTERS. No Offer or Solicitation This joint press release does not constitute an offer to sell or the solicitation of an offer to buy any securities nor a solicitation of any vote or approval with respect to the proposed transaction or otherwise. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the U S. Securities Act of 1933, as amended, and otherwise in accordance with applicable law. Additional Information and Where to Find It Investors and security holders will be able to obtain free copies of the Form S-4, the Proxy Statement and other documents filed by Hudson and Star with the SEC through the website maintained by the SEC at Copies of the documents filed by Hudson with the SEC will also be available free of charge on Hudson's website at and copies of the documents filed by Star with the SEC will also be available free of charge on Star's website at For more information contact: Investor RelationsThe Equity GroupLena Cati212-836-9611 / lcati@ Hudsonir@ As of December 31, 2024.(2) Includes unvested and unissued RSUs as of 3/31/2025.(3) Includes unvested and unissued RSUs as of 3/31/ in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Irish Times
20-05-2025
- Business
- Irish Times
Ardagh talks with creditor group break down over improving cans unit
Ardagh Group's debt restructuring talks to a group of bondholders has broken down amid a standoff over how much Paul Coulson , the packaging giant's leading shareholder, will continue to own in its improving drink cans business. The heavily-indebted business proposed in March that a group of senior unsecured bondholders write off much of the $2.32 billion (€2.05 billion) they are owed in exchange for taking full ownership of the glass containers part of the business. The plan also envisaged Ardagh Group spinning its shares in its beverage cans unit, Ardagh Metal Packaging (AMP), into a new company (NewCo). This would be 80 per cent owned by Mr Coulson and other existing Ardagh Group shareholders – with the unsecured creditors receiving the remaining 20 per cent. However, the unsecured creditors issued a proposal on Sunday that would see them take 40 per cent, rather than 20 per cent, of AMP, which has seen is prospects improve in recent quarters even as the glass containers arm of the group continues to grapple with weak demand. READ MORE There is also disagreement over the ultimate value of AMP. 'The parties have not reached an agreement and are no longer in discussions,' said Ardagh Group in a statement on Tuesday. [ Ardagh cans unit 'turns corner' amid Coulson bid to keep control Opens in new window ] 'The company remains committed to putting in place a sustainable capital structure. The company will continue to review its options and may continue discussions with its stakeholders in the future relating to its capital structure and its applicable debt maturities.' Ardagh Group, which Mr Coulson built into one of the world's largest packaging companies through a series of debt-fuelled acquisitions over the past 25 years, said more than a year ago that it was considering options to lower its $12.5 billion debt pile. The burden had become increasingly unsustainable in recent years amid weaker-than-expected earnings. Talks with the senior unsecured creditors would have become more complicated when Ardagh Group said last month that the beverage cans unit had turned a corner', helped by a rebound in activity across the energy drinks, sparking water and health and wellness categories. 'I've entrepreneurial spirit in my veins' – Apprentice star Jordan Dargan Listen | 44:45 The group's 76 per cent-owned AMP unit, which is listed on the New York Stock Exchange, reported its revenues grew by 11 per cent year-on-year in the first quarter to $1.27 billion and upgraded its full-year earnings forecast. However, Ardagh Group's legacy glass business saw its revenues drop 6.7 per cent to $961 million during the quarter as this arm of the group continued to struggle. It is expected that the focus now switch to Ardagh Group's parallel discussion with senior secured creditors, who currently stand to be made whole under the group's debt-restructuring proposal. Progress towards an agreement at this level may lead to reengagement between the senior unsecured bondholders. Meanwhile, holders of some $1.8 billion of risky bonds issued by a holding company above the operating Ardagh Group are expected to lose almost all of what they are owed. These bonds are currently trading at about 4 per cent of their original value, according to Bloomberg data. Mr Coulson controls Ardagh Group through an 18.8 per cent direct stake in its ultimate parent company and a 52.4 per cent interest in a vehicle called Yeoman Capital, which owns 33.9 per cent of the group. He effectively owns 36.6 per cent of the equity in a business that traces its roots to the Irish Glass Bottle Company, founded in Dublin in 1932. The group also has a 42 per cent stake in a food cans business, called Trivium Packaging.
IOL News
16-05-2025
- Business
- IOL News
Tiger Brands to sell Langeberg and Ashton Foods to local grower-led consortium, securing more than 3,000 jobs
Sale to a capable and committed consortium, which includes local fruit growers, paves the way for ensuring a sustainable business and protecting over 3000 permanent and seasonal jobs. Image: Simphiwe Mbokazi/Independent Media Tiger Brands, one of South Africa's prominent food producers, has formally announced its sale of the Langeberg and Ashton Foods business, marking a significant step in its strategy to align its portfolio with its broader vision. The sale agreement, which has been in the works for the last five years, will see the iconic business transition to a new owner, a newly formed company, known as NewCo, established by a consortium dedicated to the sustainability of the operations and the welfare of local fruit producers. Based in Ashton in the Western Cape, Langeberg and Ashton Foods has been a cornerstone of the local economy since its inception in 1940, employing over 3,000 permanent and seasonal workers. The decision to divest comes as part of a strategic move that Tiger Brands announced in May 2020, part of a larger effort to streamline its operations and focus on core business areas. The Consortium behind NewCo includes the Ashton Fruit Producers Co-operative, a collective of local fruit producers, alongside a development finance institution aimed at creating jobs and improving livelihoods for the community while transitioning towards sustainable practices. This collaborative effort underscores the consortium's commitment to preserving local interests, particularly regarding the sustainability of the deciduous fruit industry in the region. Remarkably, Tiger Brands will sell the Langeberg and Ashton Foods business for the nominal price of R1, symbolising a philanthropic commitment rather than a conventional financial transaction. In conjunction with this symbolic transfer, Tiger Brands has pledged R150 million to establish a Community Trust, intended to fuel socio-economic development within the Langeberg community. Notably, this Trust will hold a 10% beneficial interest in the newly formed company, ensuring ongoing community dividends from the business's operations. The CEO of Tiger Brands, Tjaart Kruger, expressed optimism regarding the sale, highlighting its importance not just for the company, but for the local economy. 'Today's announcement proves the company's commitment to securing an outcome that is in the best interest of all stakeholders,' he stated. 'The success of this sale will ensure the sustainability of the South African deciduous fruit industry and consequently improve the livelihoods of Langeberg and Ashton Foods employees, as well as the broader communities in these areas.' The sale process culminated in what Kruger called a 'long journey' to identify a partner capable of ensuring the business's sustainable future. Anthony Dicey, Chairman of the Ashton Fruit Producers Co-operative, echoed this sentiment, affirming that the establishment of NewCo is a pivotal moment that aligns with the region's agricultural heritage. In addition to the transition, Tiger Brands has committed to enhancing its environmental footprint by investing R31 million in an effluent plant upgrade, ensuring compliance with stringent environmental regulations. This step reinforces the firm's dedication to sustainable practices, even as it exits the deciduous fruit sector. The arrangement is contingent upon customary approvals from relevant competition authorities, and the completion of the sale is predicted within the latter half of the current year. As this transition unfolds, both the community and the industry are poised to witness a new chapter for Langeberg and Ashton Foods, continuing its legacy of quality products while fostering local agricultural livelihoods. Get your news on the go, click here to join the IOL News WhatsApp channel. IOL
Forbes
15-05-2025
- Business
- Forbes
McKesson To Spin-Off Its Medical-Surgical Solutions Business
(AP Photo/Paul Sakuma, File) Deal OverviewOn May 8, 2025, McKesson Corporation (NYSE: MCK, $682.28, Market Capitalization: $85.4 billion), a diversified healthcare services company, announced its intention to separate its Medical-Surgical Solutions segment into an independent company (NewCo) (for more information, visit McKesson is committed to exploring all opportunities to execute a separation in a manner that maximizes shareholder value and anticipates providing more information as appropriate on the form and timing as the process progresses. On May 1, 2025, the Board of Directors of McKesson Corporation declared a regular dividend of 71 cents per share of common stock. The dividend will be payable on July 1, 2025, to stockholders of record on June 2, 2025. McKesson Price Performance Spin-Off Details and Top 5 Shareholders Deal Rationale McKesson's strategic focus on disciplined portfolio management involves continuous evaluation of its business segments to ensure alignment with its growth priorities and optimize capital allocation. This strategic approach has previously led to transformative actions such as the divestiture of Change Healthcare in 2020 and the divestiture of its European and Canadian retail businesses, which have unlocked considerable value for shareholders. Moreover, Change Healthcare was fully acquired by UnitedHealth in 2022. As a continuation of this strategy, McKesson has announced its intent to separate the Medical-Surgical segment into an independent company. McKesson believes a separation of the Medical-Surgical Solutions business will further enhance the strategic opportunity and operational focus of both companies and unlock value for McKesson shareholders. A separation would result in two well-capitalized, world-class companies, well-positioned to pursue their respective strategic growth priorities. The separation advances McKesson and NewCo's ability to create value for customers, partners, patients, and shareholders with increased investment and dedicated capital allocation. Post-spin-off, McKesson will continue to focus on its capital deployment priorities on opportunities that best align with its long-term enterprise strategies. McKesson will advance its portfolio to focus investment on higher growth, higher margin opportunities in Oncology and Biopharma Solutions, unlocking substantial value for stakeholders. In order to strengthen its core operations, McKesson acquired Rx Savings Solutions in late 2022 to enhance biopharma and payer connectivity with patients and formed SCRI Oncology with HCA Healthcare to expand access to cancer clinical trials. McKesson holds a 51% controlling interest in SCRI, reported under its U.S. Pharmaceutical segment. Additionally, the company announced plans to acquire a controlling stake in Core Ventures, a business services organization established by Florida Cancer Specialists, with the deal expected to close on June 2, 2025. Moreover, the Medical-Surgical Solutions segment, which represents only 3.2% of the total company's revenue, has seen sluggish growth since 2020 due to a shift in demand, lower volumes, supply chain disruption and also due to post-pandemic normalization. Post-separation, the new Medical-Surgical Solutions company (NewCo) would be a differentiated medical surgical supply and solutions company with a compelling leadership position, attractive margins, and potential for growth acceleration across all the alternate sites of care markets. With FY25 revenue of around $11.4 billion, the spin off is designed to sharpen McKesson's focus on pharmaceutical and specialty services, especially in high-growth areas like oncology, while allowing both entities to pursue tailored growth strategies. McKesson Corporation, founded in 1833, is headquartered in Irving, Texas. With a legacy spanning over 190 years, McKesson plays a critical role in delivering pharmaceuticals, medical supplies, and health IT solutions across North America and selected international markets. Under the leadership of CEO Brian S. Tyler, the company trades on the NYSE under the ticker symbol MCK. The company operates through three key business segments: U.S. Pharmaceutical, Prescription Technology Solutions, Medical-Surgical Solutions, and International. Key Data U.S. Pharmaceutical Segment (91.3% of FY25 sales) U.S. Pharmaceutical segment distributes branded, generic, specialty, biosimilar and over-the-counter (OTC) pharmaceutical drugs, and other healthcare-related products in the United States (U.S.). This segment also provides practice management, technology, clinical support, and business solutions to community-based oncology and other specialty practices. In addition, the segment sells financial, operational, and clinical solutions to pharmacies (retail, hospital, and alternate sites) and provides consulting, outsourcing, technological, and other services. Prescription Technology Solutions Segment (1.5% of FY25 sales) Prescription Technology Solutions (RxTS) connects patients, pharmacies, providers, health plans, pharmacy benefit managers, and biopharma companies to improve medication access across the healthcare system. Integrated with most EHRs, 50,000+ pharmacies, 950,000 providers, and supporting 650+ biopharma brands, RxTS offers end-to-end solutions from prescription to therapy. Its services include affordability support, price transparency, benefit insights, dispensing support, logistics, and distribution. In the past year, RxTS saved patients over $10 billion, prevented 12 million abandoned prescriptions, and enabled medication access over 100 million times, reinforcing its vital healthcare role. Medical-Surgical Solutions (to be spun-off) (3.2% of FY25 sales) The Medical-Surgical Solutions segment provides medical-surgical supply distribution, logistics, and other services to healthcare providers, including physician offices, surgery centres, nursing homes, hospital reference labs, and home health care agencies. The segment offers more than 245,000 national brand medical-surgical products as well as McKesson's line of high-quality products through a network of distribution centres in the U.S. With FY25 revenue of around $11.4 billion, the spin-off is designed to sharpen McKesson's focus on pharmaceutical and specialty services, especially in high-growth areas like oncology, while allowing both entities to pursue tailored growth strategies. International segment (4.0% of FY25 sales) McKesson's International segment includes operations in Canada and Norway. McKesson Canada is one of the country's largest pharmaceutical wholesale and retail distributors, serving pharmacies, hospitals, long-term care centres, and clinics through a national distribution network. Beyond logistics, it offers automation and technology solutions to retail and hospital clients. McKesson Canada also delivers specialty health services and biopharma support, including personalized patient programs and a national network of specialty pharmacies. It operates INVIVA, Canada's first and largest accredited private infusion clinic network, and owns PDCI, the country's leading market access consultancy. These services help biopharma manufacturers introduce new products to market while enhancing patient care and access across Canada's healthcare system. Revenue 4Q25 For 4Q25, the company recorded revenues of $90.8 billion, up by 18.9% YoY compared to $76.4 billion in 4Q24, primarily driven by growth in the U.S. Pharmaceutical segment, due to increased prescription volumes from retail national customers and growth in the distribution of specialty products, including higher volumes in oncology. Operating Income for the quarter was $1.6 billion, up by 30.8% YoY with a margin of 1.8%, up by 20 bps. Adjusted operating income was $1.5 billion, up by 23.5% YoY with a margin of 1.7%, flat as compared to the prior year. The growth in operating income benefited from growth across all operating segments, including strong oncology and other specialty provider volumes, the onboarding of a new strategic customer in 2Q, and increased demand for access solutions in the Prescription Technology Solutions segment. Net income for the period was $1.31 billion, up by 57.3% YoY, while adjusted net income was $1.27 billion, up by 56.7% YoY. Similarly, Diluted EPS on a reported basis was $10.01 per share, up by 66.3%, while adjusted diluted EPS was $10.12 per share, up by 63.8% YoY. The growth in Net income and EPS was driven by a lower effective tax rate and strong operational growth across the business. FY25 For FY25, the company recorded revenues of $359.1 billion, up by 16.2% YoY compared to $309.0 billion in FY24, driven by broad-based operational strength across the business, including the onboarding of a new strategic customer in the U.S. Pharmaceutical segment. Operating Income for the year was $4.4 billion, up by 13.1% YoY with a margin of 1.2%, down 10 bps compared to the prior year. On the other hand, the adjusted operating income was $5.6 billion, up by 14.6% YoY with a margin of 1.6%, which was flat compared to the prior year. The growth in operating income was led by a double-digit growth in the U.S. Pharmaceutical and Prescription Technology Solutions segments and Canadian business within International. Excluding the impact of net gains related to McKesson Ventures, operating profit increased 12% YoY compared to the prior year, well above MCK's long-range target. Net income for the period was $3.3 billion, up by 9.8% YoY, while adjusted net income was $4.2 billion, up by 15.1% YoY. Similarly, diluted EPS on a reported basis was $25.72 per share, up by 14.9%, while adjusted diluted EPS was $33.05 per share, up by 20.4% YoY. Growth in Net income and EPS was driven by strong operational growth across the business and a lower share count. FY26 Outlook: McKesson has issued fiscal FY26 guidance for Adjusted Earnings per Diluted Share in the range of $36.75 to $37.55, reflecting an expected growth of 11% to 14% year-over year. Excluding net gains from McKesson Ventures' equity investments in FY25, the projected growth is expected to increase 13% to 16%. While the company does not forecast GAAP earnings per share, it has reaffirmed its long-term Adjusted EPS growth target of 12% to 14% and updated the long-term Adjusted Segment Operating Profit growth target for its U.S. Pharmaceutical segment from 5%–7% to a revised range of 6%–8%. Long-Term Growth Targets McKesson continues to strengthen its portfolio of differentiated assets and capabilities, advancing health outcomes for all. As a result of continued, consistent, strong execution against its strategic initiatives, McKesson is updating and reaffirming the following long-term growth targets: • Reaffirming long-term Adjusted Earnings per Diluted Share growth target of 12% to 14%. • Updating U.S. Pharmaceutical long-term Adjusted Segment Operating Profit growth target to 6% to 8% from the previous range of 5% to 7%. • Reaffirming Prescription Technology Solutions long-term Adjusted Segment Operating Profit growth target of 11% to 12%. Company DescriptionMcKesson Corporation (Parent) McKesson Corporation is a global leader in healthcare supply chain management solutions, retail pharmacy, community oncology and specialty care, and healthcare information solutions. The company is engaged in the distribution of pharmaceuticals and medical products, as well as providing technology enabled services that support the clinical and financial outcomes of healthcare providers and payers. McKesson operates through several business segments, including U.S. Pharmaceutical, Prescription Technology Solutions, Medical-Surgical Solutions, and International. Its extensive distribution network and logistics capabilities serve a wide array of customers, including hospitals, pharmacies, physicians' offices, long-term care facilities, and home health agencies. McKesson's U.S. Pharmaceutical segment distributes branded, generic, and over-the-counter drugs to retail pharmacies and institutional healthcare providers. Its international segment serves healthcare markets in Canada and Europe. The company leverages advanced analytics, automation, and digital capabilities to streamline operations and enhance healthcare delivery outcomes across geographies. McKesson has operations in more than a dozen countries and employs over 45,000 people worldwide. The company continues to invest in innovative solutions and partnerships to improve patient access, support value-based care models, and reduce the total cost of care. For FY25, McKesson reported Consolidated revenues of $359.1 billion, highlighting its scale and impact in the global healthcare ecosystem. Medical-Surgical Solutions (Spin-Off) The Medical-Surgical Solutions division handles the distribution of medical-surgical supplies, logistics, and related services to various healthcare providers, such as clinics, surgical centres, elder care facilities, hospital labs, and home healthcare agencies. It delivers over 245,000 branded medical-surgical products, along with McKesson's proprietary high-quality items, through a network of U.S.-based distribution centres. On May 8, 2025, McKesson announced plans to separate this segment into a standalone company, temporarily referred to as 'NewCo.' The business generated $11.4 billion in revenue during FY25. Organization Structure
Daily Mail
13-05-2025
- Sport
- Daily Mail
WSL rebrand is a shoddy attempt to Americanise our game and chase the Taylor Swift generation. Focus on the real problems in the women's game or there won't be a future left to play for, writes TARA ANSON-WALSH
On Monday, it was announced that the first and second tiers of women's football – the WSL and the Championship – would now be united under an 'umbrella'. The WSL would keep its name, while the Championship would become 'WSL2'. In the same announcement, Women's Super League Football – formerly WPLL, formerly NewCo (there's a theme here!) – would be the name of the company taking charge of this new venture.
