Shoppers Drug Mart, a unit of Loblaw Companies (L), is buying Lifemark Health Group in an $845 million all-cash deal.
Lifemark provides physiotherapy and massage therapy, among other services, at more than 300 clinics across Canada.
Details about Lifemark’s financial performance were not provided by Loblaw. However, Desjardins Capital Markets has estimated that the outpatient service provider generates approximately $400 million of annual revenues.
Canada’s physiotherapy and rehabilitation industry is estimated to be worth $11 billion annually. The purchase of Lifemark is expected to boost foot traffic at Shoppers Drug Mart outlets across the country.
The deal to buy Lifemark requires regulatory approvals and is expected to close in the second quarter of this year, Loblaw said in a news release.
Loblaw Companies stock is up 12% year to date at $114.54 per share. In the past year, the stock has gained 73%.
Loblaw’s announced earlier this year that it plans to repurchase $1 billion of its own shares this year, compared to $1.2 billion in 2021.