TORONTO — Private equity firm Persistence Capital Partners has signed a definitive agreement to buy the stake in Neighbourly Pharmacy Inc. that it does not already own and take the company private.
The deal will see PCP, which already owns about a 50 per cent interest in the network of independent pharmacies, pay $18.50 per share for a total of $415 million for the shares it does not already own.
Neighbourly shareholders will also receive a contingent value right worth an additional 61 cents per share for a total of $13.7 million that is payable if it achieves a target for its pro-forma adjusted earnings before interest, taxes, depreciation and amortization for its 2026 financial year.
PCP first offered $20.50 per share for Neighbourly in October last year, but cut its offer to $18.50 on Dec. 18 after what it said was difficult market conditions and views from its committed financing sources.
Neighbourly shares closed down 14 cents at $15.75 on the Toronto Stock Exchange on Friday.
The transaction requires approval by a two-thirds majority vote by Neighbourly shareholders and a majority vote by shareholders excluding PCP and its affiliates. The deal is expected to close by March 29, subject to customary conditions.
This report by The Canadian Press was first published Jan. 15, 2024.
Companies in this story: (TSX:NBLY)
The Canadian Press
