TORONTO, Dec. 31, 2018 /CNW/ - Centric Health Corporation ("Centric Health" or "the Company") (TSX: CHH), one of Canada's leading healthcare services companies, announced today that it has entered into a definitive agreement to divest its two Alberta retail pharmacy operations located in Grande Prairie and Medicine Hat to an Alberta retail pharmacy company.
The total purchase price for the sale is $4,542,000, with the ability to receive up to an additional $225,000 under an earn-out over a two year period from closing if certain performance metrics are achieved. The Company expects to apply the net proceeds from the sale towards repaying a portion of its outstanding credit facilities and for working capital purposes. The transaction is expected to close in February 2019 and is subject to a number of customary closing conditions, including a financing condition in favour of the purchaser. Scotia Capital is acting as the Company's financial advisor on the sale.
"After a careful review, we determined that our Alberta retail pharmacy operations were not core to our new strategic direction of establishing Centric Health as the leading provider of pharmacy and other healthcare services to Canadian seniors," said David Murphy, President and Chief Executive Officer of Centric Health. "These divestitures are an important first step in strengthening our balance sheet, and we look forward to our continued leadership position in specialty pharmacy operations in Alberta."
About Centric Health
Centric Health's vision is to be the leading independent provider of pharmacy and other healthcare services to Canadian seniors. The Company aspires to be world renowned for delivering the highest levels of quality care and outcomes, innovative solutions and value to seniors, patients, clients and stakeholders. Centric Health has two main operating segments: its Specialty Pharmacy division and its Surgical and Medical Centres division.
- The Specialty Pharmacy division is a "Seniors First" model composed of a growing national network of fulfilment centres that deliver high-volume solutions for the cost effective supply of chronic medication and other specialty clinical care services, serving more than 29,000 residents in over 475 seniors communities (long term care facilities, retirement homes and assisted living facilities) nationally. The Specialty Pharmacy division also provides pharmaceutical dispensing services for employees insured by corporate health plans.
- The Surgical and Medical Centres division is Canada's largest independent surgical provider operating five facilities across four provinces. It serves a diversified customer base with private paid non-insured surgeries and diagnostics, government outsourcing of insured surgeries and diagnostics and other procedures funded by third-party payors (including Workers Compensation) and is the proud owner of Canada's first Centre of Excellence in Metabolic and Bariatric Surgery.
With national networks of facilities in each of its businesses, deep knowledge and experience of healthcare delivery and extensive, trusted relationships with payers, physicians, and government agencies, the Company is uniquely positioned to address current and future healthcare needs in growing markets as the Canadian healthcare industry goes through a major transformation over the medium to long term.
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, including the timing closing of the sale of the Company's retail pharmacies. 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
For further information: David Murphy, President and Chief Executive Officer, Centric Health Corporation, 416-927-8400