TORONTO — Shoppers Drug Mart is acquiring Paragon Pharmacies Ltd. in a transaction in which SDM will gain from Paragon 19 retail pharmacies and three central fill pharmacies in British Columbia, Alberta and Manitoba. The deal is valued at an estimated $75 million in cash.
Completion of the transaction is subject to the approval of Paragon’s shareholders, acceptance by the TSX Venture Exchange and other customary closing conditions, and is expected to be completed in the third quarter.
SDM notes that the acquisition of the Paragon retail pharmacies, along with the central fill locations that service the long-term care market, represents a significant expansion of its retail presence in western Canada and that it provides a platform for SDM’s MediSystem Technologies Inc. business to enter the British Columbia and Manitoba markets.
“This acquisition is a very good fit for Shoppers Drug Mart and is consistent with our stated growth objectives in retail pharmacy and long-term care,” said president and chief executive officer Domenic Pilla. “We look forward to welcoming the pharmacists and employees of Paragon to the Shoppers family and, together, continuing to meet the needs of the patients and customers they serve.”
Currently, SDM is the licensor of full-service retail drug stores operating under the name Shoppers Drug Mart (Pharmaprix in Quebec). It has more than 1,200 Shoppers Drug Mart and Pharmaprix stores in each Canadian province and two territories.
The company also licenses or owns 57 medical clinic pharmacies operating under the name Shoppers Simply Pharmacy (Pharmaprix Simplement Santé in Quebec) and eight luxury beauty destinations operating as Murale.