Centric Health Completes Acquisition of Remedy'sRx Specialty Pharmacy and Names Jeff May as Chief Operating Officer
Acquisition makes Centric Health the leading specialty pharmacy services provider in Canada
TORONTO, May 7, 2020 /CNW/ - Centric Health Corporation ("Centric Health" or the "Company") (TSX: CHH) announced today that it has closed the previously announced acquisition of Remedy Holdings Inc. ("RHI") and the Remedy'sRx Specialty Pharmacy business (the "Acquisition"). With the Acquisition completed, Centric Health now serves over 50,000 residents in over 850 seniors and other communities across Canada, making it the leading provider of specialty pharmacy services in the country.
"This is an exciting time for Centric Health as we welcome the entire Remedy's team to the Company," said David Murphy, President and Chief Executive Officer of Centric Health. "We are also pleased to announce the addition of Jeff May to our management team as our new Chief Operating Officer. Jeff is an accomplished industry veteran with over 30 years of pharmacy and other healthcare experience in Canada. He is extremely well respected in the market and has been instrumental in the significant success that RHI has enjoyed over the past several years."
Jeff May has served as the Executive Vice-President and General Manager of RHI since 2015. Previously, he served as the Director of Healthcare Operations for Target Canada and the Senior Vice President of Professional Affairs for Shoppers Drug Mart. Mr. May will report to David Murphy, President and Chief Executive Officer of Centric Health.
The Company would also like to welcome Bruce Moody, who was appointed to the Company's Board of Directors today (the "Board"), and Peter Brown, who was appointed as a Board observer and who will be nominated for election as a director at the Company's 2020 Annual General Meeting, pursuant to certain Board nomination rights granted to Mr. Moody in connection with the Acquisition. Mr. Moody is the founder and former principal shareholder and CEO of Remedy'sRX specialty pharmacy. Mr. Brown has served as a partner at NewPoint Capital Partners Inc., an independent, mid-market investment banking firm, since 1997.
The closing cash consideration of $8 million for the Acquisition was satisfied through a $5 million advance from Crown Capital Partners Inc. ("Crown Capital") and a $3 million advance from Yorkville Asset Management Inc. for and on behalf of certain managed funds ("Yorkville") under the Company's credit facilities. In addition, Yorkville has advanced a further $3 million to the Company for working capital purposes, bringing the total outstanding indebtedness to $27 million under the Crown Capital credit facility and to $12 million under the Yorkville credit facility. The Company satisfied the closing share consideration for the Acquisition through the issuance of 125 million common shares of the Company to the vendors.
ABOUT CENTRIC HEALTH
Centric Health's vision is to be the leading provider of pharmacy and other healthcare services to Canadian seniors. Centric Health is one of Canada's leading and most trusted providers of comprehensive Specialty Pharmacy services and solutions to seniors. Centric Health operates a large national network of pharmacy fulfilment centres that deliver high-volume solutions for the cost-effective supply of chronic medication and other specialty clinical pharmacy services, serving more than 50,000 residents in over 850 seniors and other communities (long-term care homes, retirement homes, assisted living facilities and group homes) nationally.
With services that address the growing demand within the Canadian healthcare system, Centric Health's unparalleled national care delivery platform provides significant potential for future expansion and growth.
This press release contains statements that may constitute "forward-looking statements" within the meaning of applicable Canadian securities legislation. These forward-looking statements include, among others, statements regarding the Company's business strategy, plans and other expectations, beliefs, goals, objectives, information and statements about possible future events. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "estimate", "anticipate" or similar expressions suggesting future outcomes or events. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management.
Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those contemplated by such statements. Factors that could cause such differences include the Company's liquidity and capital requirements, government regulation and funding, the highly competitive nature of the Company's industry, reliance on contracts with key customers and other risk factors described from time to time in the reports and disclosure documents filed by the Company with Canadian securities regulatory agencies and commissions. These and other factors should be considered carefully and readers should not place undue reliance on the Company's forward-looking statements. As a result of the foregoing and other factors, no assurance can be given as to any such future results, levels of activity or achievements and neither the Company nor any other person assumes responsibility for the accuracy and completeness of these forward-looking statements. The factors underlying current expectations are dynamic and subject to change.
SOURCE Centric Health Corporation
For further information: Media Contacts: Centric Health Corporation: David Murphy, President and Chief Executive Officer, Centric Health Corporation, 416-927-8400; Andrew Mok, Chief Financial Officer, Centric Health Corporation, 416-927-8400