Centric Health Corporation (TSE: CHH) is on its way to becoming the largest specialty pharmacy company serving seniors in Canada, thanks to its recently announced acquisition of Remedy Holdings Inc. The price is approximately US$27.2 million.
This is the second deal in March 2020 targeting special services for seniors. Early in the month, NaviHealth acquired Innovative Healthcare Delivery IHD delivers a high-touch, patient-centric and non-clinical approach that is paired with proprietary workflow and patient engagement technology to help seniors to better understand and participate in their care plans.
In February, Guardian Pharmacy Services added to its Florida holdings with its acquisition of Atkinson’s Pharmacy, via its Jacksonville-based specialty pharmacy company.
Until November 2019, Centric operated through two segments, Specialty Pharmacy and Surgical & Medical Centers. That month, the company sold its surgical division to Kensington Capital Partners, a Canadian investment firm, for an undisclosed price. The unit consists of a network of surgical centers across Canada, located in Toronto, Mississauga, Winnipeg, Calgary and Vancouver.
Now Centric is buying Remedy Holdings, which operates a prescription specialty pharmacy business serving more than 18,500 residents of long-term care, assisted living and group homes. Its 13 pharmacies are spread across Ontario, Alberta and British Columbia.
“There are many reasons why this is the right acquisition at the right time for us and for our shareholders,” Centric CEO David Murphy said on the company’s recent fourth-quarter earnings call. “We believe current industry dynamics, including recent regulatory and other cost pressures…have compelled our sectors to consolidate. This is not just a matter of size or about being the biggest, it is about delivering the service offering our customers required in today’s environment.”
The transaction also includes a pending acquisition by Remedy Holdings, which will contribute an additional 800 beds serviced. Upon closing, Centric Health will become the leading Canadian provider of specialty pharmacy services to seniors communities, serving over 50,000 residents. This deal is expected to close in the second quarter of 2020.