Snyder Drug Stores

Katz Group of Companies

File:Katz Group of Companies logo.png
Company type	Private
Industry	Sports & entertainment Real estate development
Founded	1990 (1990), in Edmonton, Alberta
Founder	Daryl Katz
Headquarters	Edmonton, Alberta , Canada
Key people	Daryl Katz (chairman)
Owner	Daryl Katz
Subsidiaries	OEG Inc. Katz Group Properties
Website	www.katzgroup.ca

The Katz Group of Companies is a Canadian privately held business engaged in sectors including sports, entertainment, and real estate development. A subsidiary, OEG Inc., owns the National Hockey League franchise, the five-time Stanley Cup Champion Edmonton Oilers, along with professional hockey teams in the American Hockey League, Western Hockey League, and ECHL. Additionally, OEG includes Aquila Productions, a company specializing in entertainment and event management. OEG manages operations at Rogers Place, located in downtown Edmonton. The Katz Group also undertakes land acquisition, site planning, and building development projects across Canada and the United States, notably leading the design and construction of the Ice District, a development spanning over 25 acres centered around Rogers Place. Headquartered in Edmonton, Alberta, the company was established and is chaired by Daryl Katz.

From 1991 until 2016, Katz Group maintained a presence in the pharmacy sector before divesting its remaining pharmacy holdings—including the Rexall Drugstore brand and retail outlets—to American pharmaceutical corporation McKesson Corporation.

Rexall Health

File:Rexall Pharmacy Canmore Alberta.jpg

The Rexall Pharmacy in Canmore, Alberta

Katz Group’s former health-related enterprises and pharmacy operations were consolidated under the name "Rexall Health". This division comprised several independently managed entities:

• Rexall/Rexall Pharma Plus, a retail pharmacy chain operating under the historic Rexall brand with over 460 stores nationwide employing more than 8,600 staff members
• Medicentres Canada, a network of family health clinics offering services from general practitioners and specialists in cities including Edmonton, Calgary, London, and Windsor
• Claimsecure Inc., a healthcare technology and management company delivering tailored health benefit claims processing and administrative solutions to Canadian businesses and other health plan sponsors

In March 2016, Katz Group completed the sale of Rexall to McKesson Corporation for CAD 3 billion.

History of pharmacy business

In 1991, Daryl Katz, together with his father Barry Katz, acquired the Canadian franchise rights to the U.S.-based Medicine Shoppe drugstore chain for $300,000. At that time, Medicine Shoppe operated over 1,000 outlets across the United States. Barry Katz, a pharmacist by profession, had previously established the Value Drug Mart chain in Edmonton in 1978. Financial backing for this venture was secured from Vencap Equities, a venture capital fund created by the Alberta government to support local entrepreneurs. Reflecting on this early phase, Daryl Katz later acknowledged that his father's involvement in the industry was instrumental to his success in obtaining the franchise rights.

The inaugural Medicine Shoppe location under Katz Group opened its doors in 1992. By 1996, Katz Group expanded its footprint by acquiring the declining Canadian Rexall drugstore chain, which at that point comprised only a few dozen stores. Within six years of launching the first Medicine Shoppe store, Katz Group’s pharmacy operations had grown to include 80 Rexall outlets, 30 Medicine Shoppe locations, and several smaller independent retailers. The following year, in 1997, the company further expanded by purchasing Pharma Plus—a 143-store drugstore chain based in Ontario—from the supermarket operator Oshawa Group for $100 million.

In 1999, Katz Group took a step into the U.S. market by acquiring Snyders Drug Store, a Minnesota-based chain with $300 million in annual sales but operating at a loss. Two years later, in 2001, it also acquired Drug Emporium, a U.S.-based big-box discount pharmacy chain. However, Snyders filed for bankruptcy protection in 2003; its remaining 25 stores were subsequently sold to Walgreens.

On January 30, 2012, Katz Group agreed to divest its Drug Trading Company Ltd. to McKesson Corporation for approximately $920 million in cash. Drug Trading Company served as the marketing and purchasing division for a network of more than 850 independent pharmacies predominantly operating under the I.D.A., Guardian brands, and Medicine Shoppe Canada Inc. This sale accounted for around 90% of Katz Group's assets and reduced its corporate-owned and franchised store count to about 450 Rexall/Rexall Pharma Plus locations. On the same day, Katz Group also acquired Dell Pharmacies—a chain of 18 stores located in Hamilton, Ontario—which was integrated into the Rexall network.

National Bank Financial analyst Vishal Shreedhar commented on these transactions by suggesting that Katz Group aimed to exit the smaller independent and franchise pharmacy sector due to its vulnerability to recent drug policy reforms. Conversely, Katz’s corporate store operations—comprising roughly 420 outlets—benefited from stronger brand recognition, enhanced front-store product offerings, and better vendor partnerships, positioning it as a more promising growth platform. Despite selling Drug Trading Company to McKesson, Katz Group continued supplying Rexall products to the independent and franchise pharmacies involved.

On March 2, 2016, Rexall announced its complete sale by Katz Group to McKesson Corporation, a pharmaceutical company headquartered in San Francisco. Industry speculation linked this move to competitive pressures faced by McKesson from Walgreens regarding their acquisition of Rite Aid, as well as increasing challenges confronting Rexall’s sales performance. The transaction received approval under the Investment Canada Act and was finalized in December 2016.

Purchase of Edmonton Oilers

In May 2007, Katz submitted a $145 million offer to acquire the Edmonton Oilers NHL franchise, but the team's owners, the Edmonton Investors Group (EIG), promptly declined, affirming that the team was not on the market.

A subsequent proposal came in July 2007 when Katz raised his bid to $185 million; however, the EIG rejected this offer as well on August 7, 2007. Later that year, on December 12, Katz increased his bid to $188 million. Despite this, in January 2008, the EIG board once again recommended that shareholders decline the offer.

On January 28, 2008, Katz further elevated his proposal to $200 million and extended the deadline for acceptance to February 5, 2008. Shortly after, the EIG informed him that all members had consented to sell the Oilers to Katz, subject to league and financial approvals. Final authorization from the National Hockey League was granted on June 18, 2008. Katz’s ownership was officially announced on July 2, 2008, at a press event held at Rexall Place, where he received an Edmonton Oilers jersey emblazoned with "08" and his surname on the back.

To manage sports and entertainment ventures within the Katz Group, Katz established Rexall Sports Corporation, which was rebranded as Oilers Entertainment Group (OEG) in 2014. OEG’s portfolio includes ownership and operation of the Edmonton Oil Kings (WHL), the Bakersfield Condors (AHL), and Aquila Productions, a film and production company.

In April 2015, Katz revealed a collaboration with Joel Silver to launch Silver Pictures Entertainment, a new entity focused on developing, producing, and financing feature films, television series, and digital content. This venture operates under the OEG umbrella.

OEG also oversees Rogers Place, a versatile indoor arena serving as home to both the Edmonton Oilers and the Edmonton Oil Kings. Opened in downtown Edmonton in late 2016, Rogers Place hosts not only sporting events but also concerts and various entertainment activities within the Ice District, a mixed-use development centered on sports and entertainment. In 2019, Rogers Place earned the prestigious gold standard for outstanding architecture from the International Olympic and Paralympic Committees.

In response to the COVID-19 pandemic in 2020, Edmonton was selected alongside Toronto as one of two NHL hub cities to complete the remainder of the 2019-2020 season. The decade-long development of Ice District positioned Edmonton competitively on a global scale to host an event of such magnitude.

Real estate development

Katz Group Properties engages in land assembly, as well as site and building development throughout Canada and the United States. The company is spearheading the $2.5 billion Edmonton Arena District project, now branded as the Ice District.

Rogers Place and Ice District

Further information: Rogers Place and Ice District

Shortly after purchasing the Oilers in 2008, Katz aimed to construct a new downtown Edmonton arena, envisioning it as a key driver for revitalizing the city center. Following extensive public consultations and discussions with the City of Edmonton, a public-private partnership was established between Katz Group and the city to develop Rogers Place arena. Under this agreement, the city retains ownership of the arena while Katz Group manages its operations through OEG. The city’s financial contribution is funded by a Community Revitalization Levy, ensuring no additional burden on taxpayers. Construction commenced in March 2014 and reached completion by fall 2016. A prominent feature of the arena is "Ford Hall," a 24,000-square-foot grand entrance designed to serve as a versatile public and private event space.

Anchored by Rogers Place, Katz Group initiated development of the Edmonton Arena District (EAD), which rapidly became Canada’s largest mixed-use sports and entertainment complex. Spanning 25 contiguous acres in downtown Edmonton, the EAD includes a 50,000-square-foot public plaza, two office towers, a JW Marriott hotel, a Gateway Casinos gaming and entertainment venue, a Cineplex cinema complex, more than 1,000 upscale condominiums and rental units, alongside 270,000 square feet of retail space. The total investment for this project is approximately $2.5 billion. In 2014, it was revealed that both the City of Edmonton and Stantec would serve as primary tenants within the two office towers. Notably, Stantec Tower stands as Edmonton’s tallest building at 66 stories.

On July 13, 2015, it was announced that the Edmonton Arena District would be officially named Ice District. The district is conveniently accessible via the Edmonton LRT MacEwan station on the Metro Line. Situated opposite MacEwan University along 105 Avenue between 103 and 104 Street, this station began operations on September 6, 2015.