Persistence Capital Partners (PCP) and BDC Capital have acquired minority interests in Toronto based Rx Drug Mart (RxDM). Deal terms were not disclosed.
BDC Capital invested $10 million, its initial announced investment as part of $250 million growth equity initiative over the next five years.
In connection with the investment, Sean Karamchandani, Partner of PCP, and Zulf Karim, Director of Growth Equity at BDC Capital, have joined RxDM board of directors that also include Brian Dawson, CEO of RxDM and Luciano Tauro.
New funds were used to finance RxDM’s acquisition of 27 former Rexall pharmacies from McKesson in Alberta, British Columbia, the Northwest Territories, Ontario and Saskatchewan. With the completion of the acquisition, RxDM will have a network of over 40 pharmacies across the country.
“We are excited to support RxDM’s platform as they execute on their growth strategy to expand across the country,” said Claude Miron, Vice President, Growth Equity with BDC Capital. “The investment showcases BDC’s commitment to help Canadian businesses with high-growth potential scale to the next level.”
“We are delighted to continue to support a high-growth company focused on high quality patient care across the country,” said Stuart Elman, Managing Partner of PCP.
Brian Dawson, CEO of RxDM, said: “We are building a national network of pharmacies in Canadian communities that puts the focus on the needs of patients, pharmacists, staff and communities. As we achieve our goal, we have become one of the fastest growing businesses in Canada and we are excited to have BDC Capital’s Growth Equity team join our partnership with PCP. This investment helps further our vision of expanding pharmacy services and coverage in Canadian communities.”
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