TORONTO , April 26, 2021 /CNW/ - CareRx Corporation (" CareRx " or the " Company ") (TSX:CRRX.TO), 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.