Neighbourly Pharmacy, a Toronto-based network of community pharmacies, has agreed to acquire five pharmacies located across Western Canada. The total purchase price is C$21 million. Neighbourly, which went public earlier this year, is a portfolio company of Canadian healthcare private equity firm Persistence Capital Partners.
Neighbourly Announces Agreement to Acquire Five Pharmacies
TORONTO, Oct. 26, 2021 /CNW/ – Neighbourly Pharmacy Inc. (“Neighbourly” or the “Company”) (TSX: NBLY), Canada’s largest and fastest growing network of independent pharmacies, is pleased to announce that the Company has entered into a binding agreement to acquire five pharmacies located throughout Western Canada (the “Acquisition”). The Acquisition has a purchase price of $21.0 million, which will be funded from cash on hand and is consistent with the Company’s historical acquisition multiples.
The Acquisition is expected to close within Neighbourly’s fourth fiscal quarter, pending customary regulatory approvals. The Company estimates these locations will generate total annualized Adjusted EBITDA of approximately $3.0 million, based upon their most recently completed fiscal years and the implementation of synergies upon integration, and that they will be immediately accretive. Upon completion of these acquisitions, the Company will become the second-largest pharmacy operator in British Columbia and the third-largest pharmacy operator in Alberta.
“This acquisition further reinforces Neighbourly’s strong position within Western Canada,” stated Chris Gardner, the Company’s Chief Executive Officer. “It also represents the continued execution of the Company’s acquisition strategy, which has expanded our network by 40 pharmacies since the beginning of our fiscal year. These new locations act as critical healthcare providers within their communities, and we look forward to welcoming their dedicated teams to the Neighbourly family.”
About Neighbourly Pharmacy Inc.
Neighbourly is Canada’s largest and fastest growing network of community pharmacies. United by their patient first focus and their role as essential and trusted healthcare hubs within their communities, Neighbourly’s pharmacies strive to provide accessible healthcare with a personal touch. Since 2015, Neighbourly has expanded its diversified national footprint to include 172 locations, reinforcing the Company’s reputation as the industry’s acquirer of choice.