Loblaw Companies’ Shoppers Drug Mart has agreed to acquire Lifemark Health Group, a Toronto-based provider of rehabilitation, workplace health and wellness and medical assessment services. The deal, expected to close in Q2 2022, reflects a purchase price of C$845 million ($662 million). Lifemark is being sold by Audax Private Equity, which acquired the business in 2016. Northleaf Capital Partners invested in 2018.
BRAMPTON, ON, March 14, 2022 /CNW/ – Loblaw Companies Limited (TSX: L) (“Loblaw”) today announced that its wholly owned subsidiary Shoppers Drug Mart (“Shoppers”) has agreed to acquire Lifemark Health Group (“Lifemark”), a portfolio company of Audax Private Equity, for aggregate cash consideration of $845 million. Lifemark is the leading provider of outpatient physiotherapy, massage therapy, occupational therapy, chiropractic, mental health, and other ancillary rehabilitation services through its more than 300 clinics across Canada.
Loblaw’s purpose is to help Canadians live life well. The acquisition of Lifemark adds to its growing role as a healthcare service provider, with a network of health and wellness solutions, accessible in-person and digitally.
“For the past 60 years, Shoppers Drug Mart has played an important role in the health and wellness of Canadians, providing convenient, seamless access to pharmacy and healthcare services in communities nationwide,” said Jeff Leger, President, Shoppers Drug Mart. “For Canadians who want to get well and stay well, pharmacy and physical therapy services go hand in hand. Shoppers and Lifemark together make the continuum of care easier for patients.”
Through the acquisition of Lifemark, Shoppers adds the leading provider in the $11-billion Canadian outpatient physiotherapy and rehabilitation market to its team of professionals working in pharmacies, medical clinics, and healthcare businesses, supported by the company’s digital PC Health offering. Together they create a network of thousands of individual healthcare professionals, with distinct but complementary expertise, operating in neighbourhoods coast-to-coast.
“We are excited for this new chapter in Lifemark’s success story,” says Peter Stymiest, CEO at Lifemark Health Group. “Shoppers Drug Mart is a well-trusted, iconic Canadian brand, with an extensive local and virtual presence. By joining Shoppers, Lifemark will continue to grow as a national health and wellness network, reaching more Canadians who need access to care and advancing our shared vision to enrich the health of Canadians.”
“The acquisition of Lifemark strengthens our ability to support customers’ wellness, adding new categories of care. As we welcome Peter and the entire Lifemark team, we are creating a powerful combination that will reach more people and provide better health outcomes for more Canadians,” continued Leger.
The acquisition of Lifemark is subject to regulatory approvals and other customary closing conditions. The deal is expected to close in the second quarter of 2022.
CIBC Capital Markets is serving as financial advisor and Borden Ladner Gervais LLP is acting as legal advisor to Loblaw and Shoppers. Harris Williams is serving as financial advisor and Blake, Cassels & Graydon LLP and Kirkland & Ellis LLP are acting as legal advisors to Lifemark and its shareholders.
About Loblaw Companies Limited
Loblaw Companies Limited is Canada’s food and pharmacy leader, with a network of more than 2,400 corporate, franchised and Associate-owned locations in communities across the country. Loblaw’s purpose – Live Life Well® – supports the needs and well-being of Canadians who make one billion visits each year to the company’s stores.