BRAMPTON, ON, March 14, 2022 /CNW/ - Loblaw Companies
Limited (TSX: L) ("Loblaw") today announced that its wholly owned
subsidiary Shoppers Drug Mart ("Shoppers") has agreed to acquire
Lifemark Health Group ("Lifemark"), a portfolio company of Audax
Private Equity, for aggregate cash consideration of $845 million. Lifemark is the leading provider of
outpatient physiotherapy, massage therapy, occupational therapy,
chiropractic, mental health, and other ancillary rehabilitation
services through its more than 300 clinics across Canada.
Loblaw's purpose is to help Canadians live life well. The
acquisition of Lifemark adds to its growing role as a healthcare
service provider, with a network of health and wellness solutions,
accessible in-person and digitally.
"For the past 60 years, Shoppers Drug Mart has played an
important role in the health and wellness of Canadians, providing
convenient, seamless access to pharmacy and healthcare services in
communities nationwide," said Jeff
Leger, President, Shoppers Drug Mart. "For Canadians who
want to get well and stay well, pharmacy and physical therapy
services go hand in hand. Shoppers and Lifemark together make the
continuum of care easier for patients."
Through the acquisition of Lifemark, Shoppers adds the leading
provider in the $11-billion Canadian
outpatient physiotherapy and rehabilitation market to its team of
professionals working in pharmacies, medical clinics, and
healthcare businesses, supported by the company's digital PC Health
offering. Together they create a network of thousands of individual
healthcare professionals, with distinct but complementary
expertise, operating in neighbourhoods coast-to-coast.
"We are excited for this new chapter in Lifemark's success
story," says Peter Stymiest, CEO at
Lifemark Health Group. "Shoppers Drug Mart is a well-trusted,
iconic Canadian brand, with an extensive local and virtual
presence. By joining Shoppers, Lifemark will continue to grow as a
national health and wellness network, reaching more Canadians who
need access to care and advancing our shared vision to enrich the
health of Canadians."
"The acquisition of Lifemark strengthens our ability to support
customers' wellness, adding new categories of care. As we welcome
Peter and the entire Lifemark team, we are creating a powerful
combination that will reach more people and provide better health
outcomes for more Canadians," continued Leger.
The acquisition of Lifemark is subject to regulatory approvals
and other customary closing conditions. The deal is expected to
close in the second quarter of 2022.
CIBC Capital Markets is serving as financial advisor and Borden
Ladner Gervais LLP is acting as legal advisor to Loblaw and
Shoppers. Harris Williams is serving
as financial advisor and Blake, Cassels & Graydon LLP and
Kirkland & Ellis LLP are acting as legal advisors to Lifemark
and its shareholders.
About Loblaw Companies Limited
Loblaw Companies Limited is Canada's food and pharmacy leader, with a
network of more than 2,400 corporate, franchised and
Associate-owned locations in communities across the country.
Loblaw's purpose – Live Life Well® – supports the needs and
well-being of Canadians who make one billion visits each year to
the company's stores.
Led by Shoppers Drug Mart, the leader in Canada's retail drug store marketplace and the
number one provider of pharmacy products and services, Loblaw
offers full-service pharmacies and a range of services like
prescriptions, med checks, vaccinations, minor-ailment diagnoses,
and nutrition consultations in more than 1,800 locations in 10
provinces and 2 territories, including in Shoppers Drug Mart,
PharmaPrix, Loblaw pharmacy, DRUGStore Pharmacy and CENTRESante
locations.
About Lifemark Health Group
Lifemark Health Group is a Canadian leader in community
rehabilitation, workplace health and wellness and medical
assessment services. With over 20 years of service excellence,
Lifemark Health Group is a comprehensive and trusted health
provider with 3 million patient visits annually, and employs over
5,000 highly trained clinicians, medical experts and team
members.
As Canada's largest
physiotherapy company, Lifemark is passionate about enriching the
health of Canadians through movement. Lifemark's commitment to
health and wellness extends beyond patient care, to the entire
team, as evidenced through an award-winning culture.
About Audax Private Equity
Audax Group is a leading alternative investment manager with
offices in Boston, New York, and San
Francisco. Since its founding in 1999, the firm has raised
over $30 billion in capital across its Private Equity and
Private Debt businesses. Audax Private Equity has invested over
$9 billion in more than 150 platforms and over 1050 add-on
companies, and is currently investing out of its $3.5 billion, sixth private equity fund. Through
its disciplined Buy & Build approach, Audax seeks to help
platform companies execute add-on acquisitions that fuel revenue
growth, optimize operations, and significantly increase equity
value. With more than 30 employees and over 100 investment
professionals, the firm is a leading capital partner for North
American middle market companies. For more information, visit the
Audax Private Equity website www.audaxprivateequity.com
Forward Looking Statements
This press release may contain forward-looking information
within the meaning of applicable securities legislation, which
reflects Loblaw's current expectation regarding future events.
There can be no assurance regarding the ability of Loblaw to
successfully complete the acquisition of Lifemark or any growth of
its business as described in this press release.
Forward-looking information is based on a number of assumptions
and is subject to a number of risks and uncertainties, many of
which are beyond Loblaw's control, that could cause actual results
and events to differ materially from those that are disclosed in or
implied by such forward-looking information. Such risks and
uncertainties include, but are not limited to, the factors
discussed in Loblaw's current Annual MD&A and Annual
Information Form. Loblaw does not undertake any obligation to
update such forward-looking information, whether as a result of new
information, future events or otherwise, except as expressly
required by applicable law. All forward-looking statements
contained in this press release are made as of the date hereof and
are qualified by these cautionary statements.
SOURCE Loblaw Companies Limited