Katz Group of Companies

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Katz Group of Companies
Private
Industry Pharmacy
Sports & Entertainment
Real Estate Development
Founded Edmonton, Alberta
1990
Founder Daryl Katz
Headquarters Edmonton, Alberta, Canada
Key people
Daryl Katz (Chairman)
Owner Daryl Katz
Number of employees
8,600+ (2012)[1]
Subsidiaries Rexall Health
Oilers Entertainment Group
Katz Group Properties
Website katzgroup.ca

The Katz Group is one of Canada’s largest privately-owned enterprises, with operations in pharmacy, sports & entertainment and real estate development. Katz Group Pharmacies Inc. employs over 8,600 people and owns and operates more than 460 Rexall and Rexall Pharma Plus locations across Central and Western Canada. Oilers Entertainment Group (OEG) a subsidiary of The Katz Group owns the National Hockey League 5-time Stanley Cup Champion Edmonton Oilers, as well as professional hockey franchises in the American Hockey League, Western Hockey League and ECHL, and Aquila Productions, one of Canada’s leading entertainment and event companies. OEG will operate Rogers Place when it opens its doors in downtown Edmonton in 2016. Katz Group is also involved in land assembly, site and building development in Canada and the United States, including the design and development of Ice District an area encompasses more than 25 acres anchored by Rogers Place.[2] Katz Group is based in Edmonton, Alberta. Its founder and chairman is Daryl Katz.

Rexall Health[edit]

Katz Group’s pharmacy business and health-related companies operate under the newly-established banner “Rexall Health”.[3] Rexall Health includes the following independently operated businesses:

  • Rexall/Rexall Pharma Plus, a leading Canadian retail pharmacy chain with a dynamic history of innovation and growth, operating under the 100 year old Rexall™ banner. The chain employs over 8,600 people at more than 460 locations across Canada*
  • Medicentres Canada, a group of family health care clinics where family physicians and specialists practice in order to bring comprehensive, quality and accessible health care services to individuals and families in the communities of Edmonton, Calgary, London and Windsor*
  • Claimsecure Inc., an industry-leading healthcare management and technology firm that has been providing customized, value added health benefit claims management and plan administrative services to Canadian corporations and other health benefit plan sponsors for over 30 years*

On May 28, 2015, Jurgen Schreiber was named CEO of Rexall Health.[3] Schreiber has deep experience in the global retail pharmacy, health and beauty sectors, including four years as President and CEO of Canadian retailer Shoppers Drug Mart from 2007 to 2011. Prior to joining Katz Group, Schreiber served for four years as President and CEO of Edcon Group, the largest non-food retailer in South Africa, with 1,400 stores and approximately 20,000 employees across Africa.

History of Katz Group Pharmacy Business[edit]

In 1991, in a partnership with his father Barry Katz, Daryl Katz paid $300,000 for the Canadian rights to the U.S.-based Medicine Shoppe drugstore franchise which had over 1,000 stores in the USA.[4] His father was a pharmacist who founded the Value Drug Mart chain in Edmonton in 1978.[5] Katz obtained financing from Vencap Equities, a venture capital fund established by the Alberta government in support local entrepreneurs.[4] Daryl later stated: "If my father wasn't in the business and didn't have a history, I would never have succeeded in getting it."[4]

In 1992, Katz Group opened the first Medicine Shoppe store.[4] In 1996, it purchased the fading Rexall drugstore chain in Canada which at the time only consisted of several dozen stores.[4] Six years after the first Medicine Shoppe was opened, Katz Group’s pharmacy operation consisted of 80 Rexall stores, 30 Medicine Shoppe outlets and a few smaller independent retailers.[4] In 1997, it purchased the Ontario-based, 143-store Pharma Plus drug store chain from the supermarket operator Oshawa Group for $100 million.[4]

In 1999, it ventured into the U.S. with the purchase of the money-losing Minnesota-based Snyders Drug Store chain, which had $300 million in sales. In 2001, it purchased the U.S.-based Drug Emporium big-box discount chain.[4] The Snyder's chain filed for bankruptcy in 2003 and its 25 stores were sold to Walgreens.[4]

On January 30, 2012, Katz agreed to sell its Drug Trading Company Ltd. to McKesson Corporation for approximately $920 million in cash.[6] Drug Trading Company is a marketing and purchasing arm for a network of over 850 independent pharmacies that primarily operate under the I.D.A. and Guardian brands, and Medicine Shoppe Canada Inc. The sale represented about 90 per cent of the Katz Group's assets, shrinking the group's network of corporate-owned and franchised stores to 450 Rexall/Rexall Pharma Plus stores.[4] Additionally on January 30, 2012, Katz acquired the 18-store Dell Pharmacies chain that operates in the Hamilton, Ontario area. Dell joined the Rexall chain effective with the announcement.[7]

Regarding the deal, National Bank Financial analyst Vishal Shreedhar suggested that “... Katz Group wants to exit the small pharmacy-focused independent/franchise business because it is most impacted by recent drug reforms. In contrast, Katz Group’s corporate store business (approx. 420 stores) benefits from stronger brand awareness, greater front store penetration and superior vendor support, making it a better growth platform.” [8] Katz Group continues to supply Rexall products to the independent and franchise pharmacies sold to McKesson.

Purchase of Edmonton Oilers and Creation of Oilers Entertainment Group[edit]

In May 2007, Katz made a $145-million bid to buy the Edmonton Oilers franchise,[9] which the owners of the team, the Edmonton Investors Group (EIG), quickly rejected, stating the team was not for sale.

In July 2007, he made another bid for the Oilers of $185-million, which was turned down by the Edmonton Investment Group (EIG) on August 7, 2007. On December 12, 2007, Katz made an offer of $188-million to the EIG. The Board of the EIG announced in January 2008 that it would again recommend to its shareholders to reject this latest bid.

On January 28, 2008, Katz increased his offer to $200 million and extended the acceptance deadline to February 5, 2008, at which time Katz was notified by the EIG that all its members agreed to sell the Oilers to him, pending league and financial approval. On June 18, 2008, Daryl Katz received the final OK from the National Hockey League to purchase the Edmonton Oilers, and then on July 2, 2008, he was officially announced as the owner of the Edmonton Oilers during a Press Conference at Rexall Place, where he was presented with an Edmonton Oilers Jersey with the number "08" and his last name patched onto the back.[10]

The Oilers Entertainment Group (OEG) was created to run the sports & entertainment side of Katz Group. In addition to the Oilers, OEG owns and operates the Edmonton Oil Kings (WHL), and the Bakersfield Condors (AHL), as well as Aquila Productions (film & production company).

In April 2015, Katz announced a partnership with Joel Silver to create Silver Pictures Entertainment[11] – a new company that will develop, produce and provide or arrange financing for feature films, television and digital projects. Katz’ interests in the company fall under the OEG umbrella.

OEG will also operate Rogers Place,[12] the new home of the Oilers in downtown Edmonton when it opens in fall 2016.

Sports Venues with Rexall Naming Rights[edit]

Rexall Place in Edmonton, Alberta, Canada is the home of both the Edmonton Oilers of the National Hockey League and the Edmonton Oil Kings of the Western Hockey League. The Katz Group purchased the naming rights to the arena. Daryl Katz, head of the Katz Group, is the owner of the Edmonton Oilers Hockey Club.

In 2004, Katz purchased the naming rights for ten years to the new $45-million Rexall Centre, a 12,500-seat tennis and entertainment complex on the campus of York University.[13] The Rexall Centre tennis courts are in Toronto, Ontario also in Canada.

Real Estate Development[edit]

Katz Group Properties is involved in land assembly and site & building development across Canada and the United States, and is leading the $2.5 billion Edmonton Arena District development now known as Ice District.[14]

Rogers Place and Ice District[edit]

Shortly after acquiring the Oilers in 2008, Katz set his sights on building a new arena in downtown Edmonton, which he anticipated being a catalyst for downtown revitalization. Following public consultations and negotiations with the City of Edmonton, Katz Group and the City agreed to a public-private partnership to build Rogers Place arena, which would see the City retain ownership of the new arena, and Katz Group operate it (under OEG). The City’s portion of arena funding will be paid through a Community Revitalization Levy and will not result in any new cost to taxpayers.[15] Construction on the project began March 2014.

Set to open in Fall 2016, Rogers Place will be one of North America’s most advanced sports & entertainment venues, active year-round and featuring a 24,000 square foot grand entrance-way called the “Winter Garden” which can be used as public/private programmable space.

With Rogers Place at its core, Katz Group has begun construction of the Edmonton Arena District (EAD), slated to be Canada’s largest mixed-use sports and entertainment development. The EAD will cover 25 contiguous acres of downtown Edmonton, and feature a 50,000 square foot public plaza, two office towers, a Delta Hotels hotel, a Gateway Casinos gaming and entertainment facility, a Cineplex movie theatre complex, over 1,000 luxury condos and rental apartments, and 270,000 square feet of retail space at a total cost of approximately $2.5 billion. In 2014 it was announced that the City of Edmonton and Stantec would be the major tenants of the two respective office towers. The Stantec tower will be the tallest in Edmonton (62 storeys).[16]

On July 13, 2015 the Edmonton Arena District was officially introduced as Ice District.[17]

See also[edit]

References[edit]

  1. ^ Largest Alberta Employers 2012
  2. ^ NEWS, CBC (13 July 2015). "Katz Group rebrands Edmonton's arena district". CBC.Ca. CBC. Retrieved 13 July 2015. 
  3. ^ a b Health, Rexall. "REXALL HEALTH NAMES JÜRGEN SCHREIBER CEO". www.rexall.ca. Rexall Health. Retrieved 11 July 2015. 
  4. ^ a b c d e f g h i j Edmonton Journal: "Daryl Katz: reclusive billionaire" by Rick McConnell, John MacKinnon and Gary Lamphier December 17, 2012
  5. ^ Archives Canada: "Daryl Katz collection" retrieved March 9, 2013
  6. ^ "Rare Canadian pharmacy takeover is inked", Tim Kiladze, GlobeandMail.com March 31, 2012
  7. ^ Spectator, Hamilton (30 January 2012). "Dell Pharmacies Sold To Rexall Chain". Hamilton Spectator. Retrieved 11 July 2015. 
  8. ^ KILADZE, TIM. "Rare Canadian pharmacy takeover is inked". ewww.thglobeandmail.com. 
  9. ^ Journal, Edmonton (2007-05-07). "Katz Bids To Buy Oilers". Canada.com. 
  10. ^ Journal, Edmonton. "Owning Oilers a 'Dream Come True'". 
  11. ^ Journal, Edmonton. "Daryl Katz Partners With Hollywood Producer Joel Silver to Create New Entertainment Company". 
  12. ^ "EAD". Edmonton Arena District. 
  13. ^ Journal, Edmonton. "Daryl Katz: reclusive billionaire". Canada.com. Edmonton Journal. 
  14. ^ Jones, Terry. "Edmonton Arena District project unparalleled across North America, world-class in scope". EdmontonSun.com. Edmonton Sun. 
  15. ^ Edmonton, City. "The Agreement". City of Edmonton. City of Edmonton. Retrieved 11 July 2015. 
  16. ^ Stantc, Stantec. "Stantec and EAD Joint Venture unveil design for Edmonton’s tallest tower". www.stantec.com. stantec.com. Retrieved 11 July 2015. 
  17. ^ CBC, CBC. "Katz Group rebrands Edmonton's arena district". cbc.ca. www.cbc.ca. Retrieved 13 July 2015. 

External links[edit]