PCP and BDC-backed Rx Drug Mart buys Forewest Holdings

Rx Drug Mart, a portfolio company of Persistence Capital Partners, has acquired Forewest Holdings, an operator of 35 pharmacy locations in British Columbia and Alberta.

Rx Drug Mart, a portfolio company of Persistence Capital Partners, has acquired Forewest Holdings, an operator of 35 pharmacy locations in British Columbia and Alberta. No financial terms were disclosed. Based in Toronto, Rx Drug Mart is a network of independent pharmacies. It is also backed by BDC Capital’s growth equity group.

PRESS RELEASE

TORONTO, ON, Oct. 28, 2020 /CNW Telbec/ – Rx Drug Mart Inc., a leading Canadian operator of independent pharmacies from coast-to-coast, today announced that it has acquired Forewest Holdings Inc., an operator of 35 pharmacy locations in British Columbia and Alberta, further strengthening its presence in Western Canada. This latest acquisition establishes Rx Drug Mart as the largest and fastest growing independent pharmacy network in Canada, with a total of 131 pharmacies and 1,600 employees.

Chris Gardner, CEO of Rx Drug Mart, said, “Since Rx Drug Mart’s inception, our focus has been on delivering quality healthcare to Canadians all over the country, no matter where they live, so they can live well. This acquisition continues our strong growth over the past 12 months, increasing our pharmacy total by 37%, and it is highly complementary to our existing portfolio in one of our core markets, Western Canada.”

“We look forward to working with Forewest’s existing pharmacy partners and building on the great patient care they have been delivering for decades. Rx Drug Mart is uniquely positioned to fully integrate and support pharmacies across various pharmacy programs and systems across Canada. We are committed to providing a seamless experience for our customers and patients as we continue to grow over the coming years,” added Gardner.

With this transaction, Rx Drug Mart has increased its presence in British Columbia and Alberta by almost 80% and has welcomed a highly experienced operating team, including 600 pharmacy professionals, a proven successful partner model, and extensive opportunity for further operating synergies. Of the 35 pharmacies acquired, Rx Drug Mart fully owns 14 and holds equal or majority interests in the remaining 21.

Stuart M. Elman, Chairman of Rx Drug Mart and Managing Partner of Persistence Capital Partners, said, “We are excited to continue to support Rx Drug Mart’s incredible growth momentum. We welcome 35 new pharmacies and 600 new members to the Rx Drug Mart team as we aim to bring the very best health and wellness offering to communities all across Canada. Expanding in Western Canada is just another example of our commitment to serving Canadians. We expect to make more of these announcements in the near future as our acquisitive growth strategy continues to accelerate.”

As one of the largest healthcare providers in rural Canada, Rx Drug Mart’s staff are often the most accessible, and sometimes the only healthcare providers in their communities. Growing Rx Drug Mart’s network in these communities aligns with powerful trends including the rapidly increasing role of community pharmacies as the scope of practice continues to evolve and expand. COVID-19 has highlighted the essential role that community pharmacy plays in the health and wellness of Canadians whether through medication management, access to critical products or essential health care services such as flu shots, asymptomatic COVID-19 testing and numerous supplemental health services across Canada.

About Rx Drug Mart
Rx Drug Mart Inc. is one of Canada’s largest, and fastest growing independent pharmacy networks. With 131 pharmacies across the country, Rx Drug Mart focuses on putting patients first.

With a management team that has more than 100 years of combined Canadian retail and pharmacy experience, Rx Drug Mart enables pharmacists, technicians, and communities to thrive while benefitting from the company’s growing national network.
Founded in 2015, Rx Drug Mart continues to expand its national network through acquisition of community-based pharmacies and opening of new pharmacies. Rx Drug Mart is a leading provider of health care services in smaller communities with pharmacies in seven provinces and one territory.