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Canada  + Ontario  + Retail  | 
Neighbourly Pharmacy has completed its take-private sale to Persistence Capital Partners under a plan of arrangement.

Neighbourly Completes Take-Private Sale to Persistence for $836.8M

Neighbourly Pharmacy has completed its take-private sale to Persistence Capital Partners under a plan of arrangement.

The court-approved transaction covers 294 independent Neighbourly pharmacies across Canada. Toronto-based Persistence agreed to purchase the company in January for $18.50 per share in cash, a 52.6% premium above its October 2, 2023 closing price, and an additional cash payment of $0.61 per contingent value right a pro-forma earnings target.

Neighbourly announced the competition of the deal, and unveiled its terms, in a news release. The purchase price was not announced. But, as of Wednesday, Neighbourly had 45.23 million outstanding shares, making the deal worth approximately $836.8 million.

“This going-private transaction provides us with increased flexibility to pursue our growth initiatives, invest in innovation, and drive operational excellence,” said Skip Bourdo, Neighbourly’s CEO. “We are focused on continuing to grow our network of pharmacies and serve more communities across Canada.”

Neighbour’s publicly traded shares will be delisted from the Toronto Stock Exchange on Thursday.

Montreal-based Persistence acquired Neighbourly through a special-purpose acquisition company that it created, and funded the purchase through debt and equity. Persistence obtained a fully underwritten $600-million credit facility, including a $200-million undrawn revolver with commitments from Scotiabank and RBC Capital Markets.

Meanwhile, Toronto-based Brookfield Asset Management, one of Canada’s largest institutional real estate investors, agreed to a structured equity investment of up to $320 million in the privatized company.

“Brookfield is pleased to provide flexible and strategic capital to Neighbourly and PCP,” said Michael Horowitz, managing director for Brookfield and its special investments arm, which made the investment. :”We look forward to partnering with the company as it continues to grow and deliver high quality healthcare services to Canadian communities.”

The Ontario Superior Court of Justice (Commercial List) approved the deal on March 13.

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About Monte Stewart

Monte Stewart serves as Content Director - Canada for Connect Commercial Real Estate. Based in Vancouver, British Columbia, Monte provides daily news coverage of major Canadian commercial real estate markets, including Vancouver, Toronto, Montreal and Calgary. He has written about the real estate sector for various media outlets and Avison Young since the early 2000s. In addition, he has covered sports, general news and business for several leading wire services and publications, including The Canadian Press, The Associated Press, The Calgary Herald, The Globe and Mail, Research Money, The Daily Oil Bulletin, Natural Gas World and The Toronto Star. Monte is active in his community as a youth basketball coach and raises funds for such charitable causes as Movember.

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