CareRx Corporation (TSX:CRRX) announced that it has completed its $4.4 million acquisition of Hogan Pharmacy Partners Ltd, a long-term care pharmacy business in Ontario.
Hogan serves 725 residents of retirement and long-term care homes across the Canadian province.
CareRx also said it signed a new seven-year contract with Hogan’s largest customer, a regional operator of senior living facilities, representing approximately 85% of the beds Hogan serves.
READ: CareRx acquires Ontario-based Hogan Pharmacy Partners in C$4.4 million equity and debt transaction
The company said Hogan is expected to increase its serviced beds by more than 1,200 beds by the fourth anniversary of the closure based on new bed license awards and other planned growth plans for their customers, which would bring the total number of beds served to approximately 2,000.
“With the closing of this acquisition, CareRx adds a pharmacy services model that is truly unique in our industry, allowing us to offer our in-home partners additional choice from a service delivery perspective, further differentiating us from our competitors. , while extending our technology leadership,” CareRx CEO David Murphy said in a statement.
Under the term sheet, CareRx issued to the sellers of Hogan 481,400 shares of CareRx common stock worth $2.2 million and a seller’s repossession note of $2.2 million, of which $1 million is repayable after 18 months, $0.4 million is repayable after 36 months, and the final $0.8 million is repayable after 48 months, with this final repayment subject to downward adjustment to the extent that some expected incremental bed growth is not achieved on the fourth anniversary of closing.
CareRx, based in Toronto, is a leading provider of pharmaceutical services to seniors communities. The company serves approximately 96,000 residents in more than 1,600 senior and other congregate care communities and has an extensive network of strategically located pharmacy distribution centers across the country.
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