Loblaw to Acquire Lifemark Health Group to Expand Shoppers Drug Mart's Healthcare Services
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
Investor inquiries, contact: Roy MacDonald, Vice President, Investor Relations, (905) 861-2243, [email protected]; Media inquiries, contact: Catherine Thomas, Vice President, Communication, [email protected]
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