Investment part of a $250 million growth equity commitment
supporting mid-sized, high-growth businesses
MONTRÉAL, Aug. 28, 2017 /CNW Telbec/ - BDC Capital, the investment arm of BDC, is pleased to announce that it has completed a $10-million minority equity investment in Rx Drug Mart (RxDM), alongside Persistence Capital Partners (PCP) and RxDM's other existing shareholders. The investment was made in support of RxDM's growth strategy and in part enables the company to continue to look at acquisition opportunities.
"We are excited to support RxDM's platform as they execute on their growth strategy to expand across the country," says Claude Miron, Vice President, Growth Equity with BDC Capital. "The investment showcases BDC's commitment to help Canadian businesses with high-growth potential scale to the next level."
The equity investment was used to finance RxDM's acquisition of 27 former Rexall pharmacies from McKesson in Alberta, British Columbia, the Northwest Territories, Ontario and Saskatchewan. With the completion of the acquisition, RxDM will have a network of over 40 pharmacies across the country.
"We are delighted to continue to support a high-growth company focused on high quality patient care across the country," says Stuart Elman, Managing Partner of PCP.
Brian Dawson, CEO of RxDM, said: "We are building a national network of pharmacies in Canadian communities that puts the focus on the needs of patients, pharmacists, staff and communities. As we achieve our goal, we have become one of the fastest growing businesses in Canada and we are excited to have BDC Capital's Growth Equity team join our partnership with PCP. This investment helps further our vision of expanding pharmacy services and coverage in Canadian communities."
BDC Capital's investment in RxDM is part of the Bank's initiative announced in June to invest $250 million of growth equity over the next five years into mid-sized, high-growth businesses with a strong track record of positive cash flow. The initiative aims to fill a financing gap in the market, as smaller companies scale in size.
About BDC Capital
With more than $2 billion under management, BDC Capital is the investment arm of BDC, serving as a strategic partner to Canada's most innovative and high potential firms. It offers a range of equity, venture capital and flexible growth and transition capital solutions to help Canadian entrepreneurs scale their businesses into global champions. To find out more, visit bdc.ca/capital.
About Persistence Capital Partners
Persistence Capital Partners is a private equity fund exclusively focused on high growth opportunities in the healthcare field. With deep healthcare industry expertise, PCP aims to create significant long-term capital appreciation for its investors by identifying and developing important investment opportunities in the Canadian healthcare market.
About Rx Drug Mart
Born from a view that there was an opportunity for retail pharmacy to better serve the needs of rural community patients and customers, the team at Rx Drug Mart has established a pharmacy retail organization that brings the priority back to the pharmacy, the patient, and the community. Rx Drug Mart has a management team with significant experience operating over 40 pharmacies across Canada. RxDM pharmacies are located across Canada in towns and small rural communities.
SOURCE Business Development Bank of Canada
For further information: Flavie Côté, Senior Advisor, Media Relations, BDC, email@example.com, 1-844-625-8321; Ross Wace, VP Human Resources, Rx Drug Mart Inc., firstname.lastname@example.org, 416-457-9430