An American healthcare company has announced it will acquire one of Canada’s largest privately owned drugstore groups for $3 billion.

McKesson Corporation announced on Wednesday a definitive agreement to acquire Rexall Health from Katz Group. McKesson’s acquisition of the company will help strengthen its position in Canada where it delivers medicines, supplies, and information technologies to the healthcare industry.

“The acquisition of Rexall Health supports McKesson’s commitment to drive value in the industry by improving healthcare solutions delivered in the pharmacy; it enhances our ability to provide best-in-class pharmacy care through an expanded retail footprint for patients across Canada,” said John H. Hammergren, chairman and chief executive officer, McKesson Corporation.

The transaction will see McKesson acquire approximately 470 retail pharmacies across the country. The company currently has approximately 9,000 employees. During the transition, Rexall Health CEO Jürgen Schreiber says it will be business as usual at its stores.

“This transaction is a natural next step for two companies that have a history of working together to deliver care to Canadians,” said Schreiber in a statement. “McKesson has been active in Canada for over 100 years, helping to build a strong network of independent pharmacies. With McKesson, Rexall Health will be able to serve a complete range of pharmaceutical care needs and ensure choice to consumers at a time when Canadians are more concerned than ever about their healthcare.”

The acquisition, which will be funded by a mix of cash and debt, is expected to close in late 2016. The transaction is subject to review under the Investment Canada Act and by the Competition Bureau of Canada.