TORONTO, Oct. 1, 2015 /CNW/ - Richards Packaging Income Fund (TSX: RPI.UN) (the "Fund") announces today the acquisition of all of the outstanding shares of Healthmark Services Ltd. ("Healthmark"), the leading Canadian provider of sterile IV, chemo and oral drug packaging and dispensing systems to the health care industry. The purchase price of $16.8 million was financed by a $15.0 million increase to the term credit and a $1.8 million draw down on the revolving credit.
"We are delighted with this acquisition because it represents a perfect strategic fit for Richards. Healthmark will strengthen our position in the health care industry which has been the cornerstone for Richards Packaging since its inception", commented Gerry Glynn, Chief Executive Officer of Richards Packaging.
About Richards Packaging Income Fund
The Fund owns Richards Packaging Inc. ("Richards Packaging"), the leading packaging distributor in Canada, and third largest in North America. Richards Packaging is a full-service packaging distributor targeting small- and medium-sized North American businesses. Richards Packaging has operated since 1912 and currently serves over 12,500 regional food, wine and spirits, cosmetic, specialty chemical, pharmaceutical and other companies from 18 locations throughout North America.
About Healthmark Services Ltd.
Healthmark is the leading Canadian provider of sterile IV, chemo and oral drug packaging and dispensing systems to the health care industry. Healthmark has operated since 1990 and for over two decades has developed an excellent reputation for providing innovative pharmacy and IV products, as well as systems that offer cost-effectiveness, production efficiencies, safety and ease of use.
SOURCE Richards Packaging Income Fund
For further information: Gerry Glynn, Chief Executive Officer, Richards Packaging Inc., (905) 670-7760, [email protected]; Enzio Di Gennaro, Chief Financial Officer, Richards Packaging Inc., (905) 670-7760, [email protected]