By Bill Hethcock Staff Writer, Dallas Business Journal
Health care giant and Fortune 500 company McKesson Corp. announced Friday plans to move its global headquarters from San Francisco to Las Colinas.
The San Francisco Business Times, a sister publication to the Dallas Business Journal, first reported in November that McKesson appeared to be setting the stage to shift its corporate operations to North Texas.
At the time, McKesson (NYSE: MCK) denied that its headquarters was in play.
However, the company, which ranks sixth on the Fortune 500 and was the Bay Area’s second-largest public company in terms of annual revenue, now says it will move its headquarters to the Irving area, effective April 1.
“We are excited to strengthen our presence in Texas and make Las Colinas our official global headquarters,” John H. Hammergren, McKesson’s chairman and CEO, said in a prepared statement. “Governor Abbott and the Irving/Las Colinas community have provided tremendous support since we opened our Las Colinas campus last April. Making this move will improve efficiency, collaboration and cost-competitiveness, while providing an exceptional work environment for our employees.”
Abbott said he is “delighted” with McKesson’s decision.
“The company has a long record of success in our state,” the governor said in a prepared statement. “McKesson’s expansion is an example of the kind of high-quality companies and jobs Texas has attracted as a result of our focus on economic growth, and I am proud to welcome them to the Lone Star State.”
Information about whether McKesson received state or local economic incentives to relocate its headquarters was not immediately available. The state awarded $9.75 million to the health care giant through the Texas Enterprise Fund when the company announced its Irving campus last year.
McKesson’s Las Colinas campus has been a key hub for the company, where employees work in the company’s operations, information technology, finance and accounting, marketing and sales, administration and support, purchasing, and project management departments.
As the company shifts its headquarters to the campus, it said it will continue to keep a strong presence in California. More than 1,400 employees, primarily in distribution and sales, will remain in the Golden State. Earlier this year, McKesson opened a distribution center for its medical-surgical division in Roseville, California.
McKesson Ventures will also remain in San Francisco, along with a technology development team for the company’s U.S. Oncology Network.
The move to North Texas supports a multi-year strategic growth initiative announced in April, McKesson said. The initiative includes plans to optimize McKesson’s operating and cost structures, and it’s expected to generate $300 million to $400 million in annual pre-tax gross savings by the end of fiscal year 2021.
“As part of our strategic growth initiative, we’ve developed a hub location strategy, co-locating people based on the type of work they do to improve teamwork, advance innovation and increase efficiency,” Brian Tyler, president and chief operating officer at McKesson, said in a prepared statement. “Bringing employee groups together in key locations will make McKesson a more streamlined and agile company, complementing our investments and improving operating profit growth for the organization.”
McKesson joins a wave of California company headquarters relocating to North Texas. In the past few years, Toyota, Kubota Tractor, Charles Schwab Corp. (NYSE: SCHW), Jamba Juice and dozens of others have made the move from the Golden State to the DFW area.
Published on 2018-12-11 14:20:34
