- Second Divestiture This Month Further Sharpens Focus on High Growth,
Sustainable, Low Risk Healthcare Services Businesses -
TORONTO, June 24, 2014 /CNW/ - Centric Health Corporation ("Centric Health") (TSX: CHH), Canada's
leading diversified healthcare company, today announced that it has
entered into a definitive agreement to sell substantially all of the
assets of the Company's methadone pharmacy operations, referred to as
the DNPI Group ("DNPI"), to a consortium of healthcare investors, for
$20 million.
"The divestiture of DNPI represents the next step in the evolution of
business, further optimizing our portfolio to focus on our core
strengths and best opportunities," said David Cutler, President and
Chief Executive Officer. "With $70 million in combined proceeds from
this transaction and the recently announced sale of our retail medical
equipment operations, we are well positioned to invest in businesses
with strong cash flows, high margins and limited regulatory and funding
risk that address our focus on servicing growing needs for innovative
healthcare solutions."
Mr. Cutler added, "The divestiture also provides us with additional
flexibility as we move forward in our debt reduction strategy."
The purchase price of $20 million will be settled entirely in cash. The
sale is subject to certain regulatory approvals, as well as customary
closing conditions, and is expected to close sometime in August 2014.
Centric Health purchased the DNPI Group assets for $9.7 million from
receivership in August of 2011. Under the strong leadership of Centric
Health management, the business has since expanded to a network of 12
specialty pharmacies servicing 36 methadone treatment centres across
Ontario that provide access to treatment and care for patients
undergoing methadone maintenance treatment.
Following the close of the transaction, Centric Health's Specialty
Pharmacy segment will consist primarily of its seniors home pharmacy
operations, which provide medication dispensing and consulting services
to more than 200 long-term care and retirement homes in Ontario with
more than 20,000 residents through five distribution centres.
Centric Health Investor Day - Tuesday June 24th in Toronto
Centric Health will host its 2014 Investor Day on Tuesday, June 24th from 9:00 a.m. to 11:00 a.m. at St. Andrew's Club in Toronto. To
register, email Danielle Babineau at dbabineau@tmxequicom.com.
For those unable to attend the event in person, a live webcast will be
available on the Centric Health web site at http://www.centrichealth.ca/investors/events-and-presentations.
About Centric Health
Centric Health's vision is to be Canada's premier healthcare company,
providing innovative solutions centered on patients and healthcare
professionals. As a diversified healthcare company with investments in
several niche service areas, Centric Health currently has operations in
medical assessments, disability and rehabilitation management,
physiotherapy and surgical centres, homecare, specialty pharmacy and
wellness and prevention. With knowledge and experience of healthcare
delivery in international markets and extensive and trusted
relationships with payers, physicians, and government agencies, Centric
Health is pursuing expansion opportunities into other healthcare
sectors to create value for all stakeholders with an unwavering
commitment to the highest quality of care. Centric Health is listed on
the TSX under the symbol CHH. For further information, please visit www.centrichealth.ca.
This press release contains statements that may constitute
"forward-looking statements" within the meaning of applicable Canadian
securities legislation. These forward-looking statements include,
among others, statements regarding business strategy, plans and other
expectations, beliefs, goals, objectives, information and statements
about possible future events. Readers are cautioned not to place undue
reliance on such forward-looking statements. Forward-looking statements
are based on current expectations, estimates and assumptions that
involve a number of risks, which could cause actual results to vary and
in some instances to differ materially from those anticipated by
Centric Health and described in the forward-looking statements
contained in this press release. No assurance can be given that any of
the events anticipated by the forward-looking statements will transpire
or occur or, if any of them do so, what benefits Centric Health will
derive there-from.
SOURCE Centric Health Corporation
