CareRx Closes Acquisition of Rexall Pharmacy Group's Ontario and Northern Alberta Long-Term Care Pharmacy Business
TORONTO, June 21, 2021 /CNW/ - CareRx Corporation ("CareRx" or the "Company") (TSX: CRRX), Canada's leading provider of pharmacy services to seniors living and other congregate care communities, announced today that it has closed the previously announced transaction to acquire Rexall Pharmacy Group's ("Rexall") long-term care pharmacy business in Ontario and Northern Alberta (the "Transaction").
Under the terms of the Transaction, CareRx acquired contracts serving approximately 4,000 residents of long-term care, assisted living and other congregate care settings across Ontario and Northern Alberta and a pharmacy fulfillment centre in Sudbury, Ontario.
CareRx satisfied the cash closing price of $3.5 million through existing cash on hand. The Transaction is expected to contribute annualized run-rate revenue of approximately $14 million and nominal adjusted EBITDA prior to integration synergies.
CareRx will be working with Rexall to transition residents serviced under the acquired contracts to CareRx pharmacy services over the course of next several weeks. Following these transitions, CareRx expects to service approximately 56,000 residents in over 950 seniors and other congregate care communities.
CareRx is Canada's leading provider of pharmacy services to seniors living communities. We serve over 56,000 residents in over 950 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.
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 exposure to and reliance on government regulation and funding, the Company's liquidity and capital requirements, exposure to epidemic or pandemic outbreak, acquisitions and integrations undertaken by the Company, 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: For more 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, email@example.com