Calgary Co-op to Acquire Care Pharmacies
A wholly owned subsidiary of Calgary Co-op has entered into a definitive agreement to become the majority shareholder in Care Pharmacies, with the transaction expected to close in the first quarter of 2024, subject to the satisfaction or waiver of customary closing conditions, including the receipt of required regulatory approvals.
Care Pharmacies was founded in 2013 and is currently the largest group of independent Canadian retail pharmacies controlled by licensed pharmacists. Based in Vaughan, Ontario, it has 56 drug stores located in five Canadian provinces. Each drug store prioritizes patient care, and often also serves as the retail shopping and pharmacy hub within the community in which it operates.
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“We saw a strong alignment of values between Care Pharmacies and Calgary Co-op,” said Ali Reyhany, CEO of Care Pharmacies. “As hubs within our communities, we know that Care Pharmacies will continue to be strong beacons of trust and service for Canadians and their health and wellness. We have found a great partner in Calgary Co-op, and we look forward to continuing to grow our business across Canada.”
“We believe that Care Pharmacies will be a tremendous fit with our focus on growth in health and wellness, led by pharmacy and supported by natural foods and home health care,” added Ken Keelor, CEO of Alberta-based Calgary Co-op. “This acquisition will follow enhancements we’ve made to our own pharmacies over the last few years, the earlier acquisitions of Beacon Pharmacies and Community Natural Foods, and continued growth and enhancements to our home health bare business. We are pleased to diversify our investment in communities across Canada.”
Calgary Co-op has continued to evolve and grow its brand through investments in technology, redeveloping food store locations, making acquisitions, and responding to the needs of its more than 400,000 members and 3,850 employees. Today, Calgary Co-op is one of the largest retail co-operatives in North America, and home to food centers; pharmacies; gas stations; car washes; home health care centers; wine, spirits and beer locations; and cannabis. In addition, Calgary Co-op operates and is the beneficial owner of Beacon Pharmacies, Community Natural Foods, The Organic Box, and Willow Park Wines & Spirits.
After the closing of the transaction, Care Pharmacies will continue to operate as a separate entity. Reyhany and the rest of the Care leadership team will continue in their positions supporting the entire Care team.
CIBC Mid-Market Investment Banking acted as Calgary Co-op’s exclusive financial advisor for the deal, while BMO Mid-Market Mergers & Acquisitions served as Care Pharmacies’ exclusive financial advisor.
