Neighbourly Pharmacy Inc. (TSX: NBLY) announced this morning that it has entered into a binding agreement to acquire 20 pharmacies located throughout Alberta. The acquisition is reported to be for consideration of $41.0 million.
“These 20 locations are remarkably well-run pharmacies that act as pillars of healthcare within their communities,” said Neighbourly CEO Chris Gardner. “Their focus on patient care makes them an ideal partner as Neighbourly continues to execute upon its acquisition strategy, successfully integrating pharmacies and driving incremental value throughout our expanding network.”
The pharmacy chain relayed that the purchase will be funded by cash on hand. The said acquisition plus an additional acquisition of a single independent pharmacy is expected to generate approximately $7 million in adjusted EBITDA. The acquisition of these 21 pharmacies also pushes the firm’s network to a total of 167 locations across Canada.
The company previously reported that it ended the fiscal year 2021 with $306.5 million in revenue, $90.5 million net loss, and $46.0 million in cash balance.
The transactions are expected to close within fiscal Q3 2022, subject to customary regulatory approvals.
Neighbourly Pharmacy Inc. last traded at $30.25 on the TSX.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
