TribLIVE

| Business


 
Larger text Larger text Smaller text Smaller text | Order Photo Reprints

McKesson selling automation unit in Cranberry to private equity firm

On the Grid

From the shale fields to the cooling towers, Trib Total Media covers the energy industry in Western Pennsylvania and beyond. For the latest news and views on gas, coal, electricity and more, check out On the Grid today.

Daily Photo Galleries

Business Photo Galleries

Wednesday, Oct. 16, 2013, 10:39 a.m.
 

McKesson Corp. has agreed to sell its Cranberry automation business to a San Francisco private equity firm.

Terms of the deal were not disclosed. McKesson Automation makes robotic equipment used in hospitals to code and distribute pharmaceuticals.

Private equity firm Francisco Partners said it plans to change the name of McKesson Automation after the deal closes, which is expected during the current quarter.

In May, San Francisco-based McKesson Corp. said it planned to sell the automation business, which it purchased for $65 million in 1996 from Sean McDonald. McDonald, who founded the company as Automated Healthcare around 1990, went on to found Precision Therapeutics Inc., a South Side company that produced a test used by cancer doctors to set chemotherapy doses.

McKesson Automation employs about 780 people, with 480 of them in Cranberry at its administration offices and manufacturing plant, spokeswoman Betsy Martinelli said.

The company is not expecting any changes after the deal closes, she said, calling the management of Francisco Partners “hands-off.”

Francisco Partners said in a statement that it plans to work with the company's leadership team “to expand the automation business as a standalone company.”

Alex Nixon is a staff writer for Trib Total Media. He can be reached at 412-320-7928 or anixon@tribweb.com.

Add Alex Nixon to your Google+ circles.

Subscribe today! Click here for our subscription offers.

 

 

 
 


Show commenting policy

Most-Read Business Headlines

  1. Shift in what powers the grid raises concerns about fuel diversity
  2. Mylan closes $5.3B tax-lowering deal with Abbott Labs
  3. Highmark lays off nearly 100 workers, mostly in IT, as membership declines
  4. Toyota Mirai to run on hydrogen fuel cells, widen green-vehicle divide
  5. Protesters refuse to pay back education loans
  6. Women encouraged to become engineers
  7. Free-market thinker Hall to lead Congressional Budget Office
  8. Easier home loan rules worry some
  9. Severance tax on natural gas drilling backed by Pa. voters
  10. Wolf tax proposal puts Beaver County Shell plant at risk, gas group head says
  11. Unruly photo collection? Get it under control with organizing program