CareRx Corporation (TSX:CRRX) said it has closed its $4.4 million acquisition of Hogan Pharmacy Partners Ltd, a long-term care pharmacy business in Ontario.
Hogan serves 725 residents in long-term care and retirement homes across the Canadian province.
CareRx also said it has signed a new seven-year contract with Hogan's largest customer, a regional seniors living operator, representing approximately 85% of the beds serviced by Hogan.
READ: CareRx to acquire Ontario’s Hogan Pharmacy Partners in C$4.4M stock-and-debt deal
The firm said that Hogan is expected to increase its beds serviced by over 1,200 beds by the fourth anniversary of closing based on new bed license allocations and other anticipated growth plans for their customers, which would increase the total beds serviced to approximately 2,000.
"With the closing of this acquisition, CareRx adds a pharmacy services model that is truly unique in our industry, enabling us to provide our home partners with additional choice from a service delivery standpoint, further differentiating us from our competitors, while also extending our technology leadership," David Murphy, CEO of CareRx said in a statement.
Under the term sheet, CareRx issued the vendors of Hogan 481,400 CareRx common shares with a value of $2.2 million and a $2.2 million vendor take-back note, of which $1 million is repayable after 18 months, $0.4 million is repayable after 36 months, and the final $0.8 million is repayable after 48 months with this final repayment subject to downward adjustment to the extent that certain expected additional bed growth is not achieved by the fourth anniversary of closing.
Toronto-based CareRx is a leading provider of pharmacy services to seniors living communities. The company serves approximately 96,000 residents in over 1,600 seniors and other congregate care communities and has a large network of pharmacy fulfillment centres strategically located across the country.
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