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McKesson sells water unit
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January 11, 2000: 9:58 a.m. ET
French food processor Danone buying operation for $1.1B cash
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NEW YORK (CNNfn) - Health-care supply management company McKesson HBOC Inc. agreed Tuesday to sell its McKesson Water Products Co. unit to French food products firm Groupe Danone for $1.1 billion cash.
The water products unit is the No. 3 distributor of bottled water in the United States, marketing Crystal and Alhambra brands in 30 states.
McKessonHBOC co-presidents and co-CEOs John H. Hammergren and David L. Mahoney say the sale of the subsidiary will free McKessonHBOC to concentrate on health-care services and supply management operations.
"Given our strategic focus on improving health-care quality and cost through our market-leading positions in healthcare information technology and supply management, McKesson Water Products was not a core business," they said in a joint statement.
McKesson Water Products had revenue of more than $380 million in fiscal 1999, ended March 31.
Groupe Danone is the leading French food producer, with 1998 sales of $14.4 billion, and is No. 2 worldwide in bottled water. Its brands include Dannon and Evian water, Lu biscuits, and dairy products marketed under the name Dannon in the United States. 
-- from staff and wire reports
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