Neighbourly Pharmacy Inc announced on Monday an agreement in which private equity firm Persistence Capital Partners (PCP) will take the company private by paying $18.50 per share in cash, or a total consideration of $415 million, for the roughly 50% of Neighbourly shares that PCP doesn’t already own.
Neighbourly shareholders will also receive a contingent value right worth an additional $0.61 per share, for a total of $13.7 million, which is payable if the company achieves a target for its pro-forma adjusted earnings before interest, taxes, depreciation and amortization for its 2026 financial year.
In addition, Brookfield Asset Management (TSX:BAM.A) Ltd has committed to a structured equity investment of up to $320 million in the privatized company.
The transaction is expected to close by March 29, 2024, subject to the satisfaction of customary closing conditions.