- CareRx has announced that it will acquire the Long-Term Care Pharmacy Division of Medical Pharmacies Group
- The acquisition will add approximately $150 million in annual revenue for the company and increase its capacity to serve over 88,000 residents
- CareRx also announced a subscription receipt financing of $45 million, which will finance, in part, the $75 million purchase of the LTC Pharmacy Division
- The acquisition is expected to close by late June or early July 2021
- CareRx is a provider of specialty pharmacy services to seniors.
- CareRx (TSX:CRRX) is up 8.69 per cent and is currently trading at $5.88 per share
CareRx will acquire the Long-Term Care Pharmacy Division of Medical Pharmacies Group.
The agreement will add approximately $150 million in annual revenue.
The LTC Pharmacy Division is comprised of 18 fulfillment centres serving approximately 36,000 residents of long-term care, assisted living and other congregate care settings across Ontario, Alberta and British Columbia.
Once the acquisition is complete, CareRx will have the ability to serve over 88,000 residents through its national fulfillment network.
Increasing the scale of the company’s network and revenue generation will allow CareRx to capitalize on favourable industry dynamics including a rapidly growing seniors population.
David Murphy, President and CEO of CareRx, commented,
“MPGL’s LTC Pharmacy Division has a reputation for service and clinical excellence and, as part of CareRx, will provide strategic benefits that we are confident will further strengthen our service offering to our customers, while enhancing our future growth opportunities.”
CareRx also announced a subscription receipt financing of $45 million, which will finance, in part, the $75 million purchase of the LTC Pharmacy Division.
The company has entered into an agreement with Eight Capital and Cormark Securities who, on behalf of a syndicate of underwriters, have agreed to purchase 8,911,000 subscription receipts at $5.05 per receipt to make up the $45 million.
CareRx also expects to refinance its existing credit facilities for aggregate gross proceeds of approximately $55 million.
The acquisition is expected to close by the end of June or the beginning of July.
CareRx is a provider of specialty pharmacy services to seniors.
The company is a national organization with a large network of pharmacy fulfillment centres strategically located across the country.
CareRx (TSX:CRRX) is up 8.69 per cent and is trading at $5.88 per share as of 11:37 am ET.