CareRx to Add 4,200 Beds through Partial Acquisition of the Long-Term Care Pharmacy Business of Rexall Pharmacy Group
TORONTO, April 26, 2021 /CNW/ - CareRx Corporation ("CareRx" or the "Company") (TSX: CRRX), Canada's leading provider of specialty pharmacy services to seniors, announced today that it has entered into a definitive agreement with the Rexall Pharmacy Group ("Rexall") to acquire a portion of Rexall's long-term care pharmacy services business (the "LTC Pharmacy Business"), which is expected to add approximately 4,200 residents serviced (the "Transaction"). Upon closing of the Transaction, as well as the previously announced acquisition of the long-term care pharmacy division of Medical Pharmacies Group Limited, CareRx expects to service over 90,000 residents through the largest national seniors care pharmacy platform in Canada.
Rexall has agreed to sell selected assets and operations of its LTC Pharmacy Business to CareRx. Under the terms of the Transaction, CareRx will acquire a pharmacy fulfillment centre in Sudbury, Ontario, as well as a portion of the LTC Pharmacy Business that serves a total of approximately 4,200 residents of long-term care, assisted living and other congregate care settings across Ontario and Alberta.
"We are pleased to be working with Rexall on the acquisition of a portion of their LTC Pharmacy Business," said David Murphy, President and Chief Executive Officer of CareRx. "We are confident that we will deliver the same high-quality service offering that residents and home operators have come to expect from Rexall, and we are committed to ensuring as seamless a transition as possible."
Mr. Murphy added: "This acquisition will even further expand what is already the largest national platform in the seniors care pharmacy sector in Canada, and strengthen our ability to provide superior service to the growing number of Canadians living in seniors communities."
The closing consideration is comprised of $3.5 million of cash, which CareRx expects to satisfy with cash on hand. The Transaction is expected to close in June or July 2021, subject to the satisfaction of customary conditions to closing.
CareRx and Rexall will be jointly reaching out to home operators to discuss timing for the transition of specific homes.
CareRx is Canada's leading provider of pharmacy services to seniors communities. We serve over 52,000 residents in over 900 seniors and other congregate care communities (long-term care homes, retirement homes, assisted living facilities, and group homes). We are a national organization with a large network of pharmacy fulfillment centres strategically located across the country. This allows us to deliver medications in a timely and cost-effective manner and quickly respond to routine changes in medication management. We use best-in-class technology that automates the preparation and verification of multi-dose compliance packaging of medication, providing the highest levels of safety and adherence for individuals with complex medication regimes. We take an active role in working with our home operator partners to promote resident health, staff education, and medication system quality and efficiency.
Rexall operates the LTC Pharmacy Business through Rexall Health Solutions, a division of Rexall which provides highly specialized clinical care and complex medication management services in transitional care settings. The business specializes in chronic conditions; complex medication therapies; specialized delivery and administration; and intricate therapies; drugs and drug/device combination therapies that require clinical and administrative oversight.
Rexall is among the most trusted names in pharmacy, with a heritage that dates back to the turn of the century. Since 1904, Rexall has been focused on helping to improve the health of Canadians with personalized and professional pharmacy care.
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, including in respect of the Transaction. 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 exposure to and reliance on government regulation and funding, the Company's liquidity and capital requirements, exposure to epidemic or pandemic outbreak, 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 CareRx Corporation
For further information: visit www.carerx.ca or contact: David Murphy, President & Chief Executive Officer, CareRx Corporation, 416-927-8400; Lawrence Chamberlain, Investor Relations, LodeRock Advisors, 416-519-4196, firstname.lastname@example.org