Retail News Breaks Archives
Shoppers Drug Mart to acquire Paragon Pharmacies
May 23rd, 2012
TORONTO – Shoppers Drug Mart Corp. (SDM) has agreed to purchase Paragon Pharmacies Ltd., a publicly held drug chain in western Canada.
Under the deal, SDM will acquire Paragon's 19 retail pharmacies and three central fill pharmacies in the provinces of British Columbia, Alberta and Manitoba for approximately $75 million in cash, subject to adjustments.
The transaction is subject to approval by Paragon shareholders, acceptance by the TSX Venture Exchange and other customary closing conditions.
Expected to close in the third quarter, the acquisition will significantly expand SDM’s presence in western Canada and will provide a platform for the company’s Medisystem Technologies Inc. business to enter the markets of British Columbia and Manitoba.
“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 Domenic Pilla, president and chief executive officer of SDM.