(Reuters) – Loblaw Cos Ltd said on Monday its Shoppers Drug Mart division would buy physiotherapy and mental health services provider Lifemark Health Group for C$845 million ($662.33 million), as the Canadian chain looks to bolster its healthcare business.
The COVID-19 crisis has prompted Canadians to spend more on improving their mental and physical health as the disease, lockdowns and other pandemic curbs have taken a toll on their overall wellbeing.
Lifemark, which also offers massage therapy and occupational therapy, would help the drug chain reach more customers, Shoppers Drug Mart President Jeff Leger said.
There are more than 1,300 pharmacist-owned Shoppers Drug Mart stores across Canada, while Lifemark, a portfolio firm of Audax Private Equity, has over 300 clinics.
The deal is expected to close in the second quarter this year, Loblaw said.
Same-store sales in Loblaw’s drug retail segment increased by 5% in 2021.
($1 = 1.2758 Canadian dollars)
(Reporting by Praveen Paramasivam in Bengaluru; Editing by Krishna Chandra Eluri)
