Publicly traded Centric Health Corporation has sold its surgical and medical centers business to Clearpoint Health Network, a new platform company formed by Kensington Equity, for $35 million.
With the transaction closed, Clearpoint is now the largest network of independent surgical centers in Canada with locations in Toronto, Mississauga, Winnipeg, Calgary and Vancouver.
Toronto-based Centric Health (TSX: CHH) is a provider of pharmacy and other healthcare services to Canadian seniors. The company operates a national network of pharmacy fulfillment centers that provides chronic medication and other specialty clinical pharmacy services to more than 31,000 customers in over 460 seniors communities (long-term care, retirement homes, and assisted living facilities) nationally.
“We are focused on delivering high-quality patient care and are looking to build meaningful relationships and partnerships in the health care community,” said Kirk Hamilton, a senior vice president at Kensington. “This platform investment represents a tremendous opportunity to collaborate with all stakeholders in Canadian health care.”
“We are pleased to close this transaction, which was a key pillar of our strategic transformation,” said David Murphy, president and chief executive officer of Centric Health. “By further strengthening our balance sheet, we are now better positioned to pursue additional growth opportunities in the senior’s pharmacy space. We want to thank all our employees and healthcare professionals for their commitment to the surgical business over the past several years, and we wish Clearpoint all the best moving forward.”
Kensington invests in mid-market buyouts of mature profitable businesses with total enterprise values typically ranging from $50 million to $500 million. Sectors of interest include information technology, industrials, energy, consumer staples, media, consumer discretionary, financials, real estate, healthcare, and telecom. Kensington was founded by Tom Kennedy in 1996 and is headquartered in Toronto.
© 2019 Private Equity Professional | December 2, 2019