Rx Drug Mart receives influx of capital from BDC in its bid for 27 Rexall pharmacies

MONTRÉAL — BDC Capital, the investment arm of BDC, on Monday announced that it has completed a $10-million minority equity investment in Rx Drug Mart, alongside Persistence Capital Partners and RxDM's other existing shareholders. The investment was made in support of RxDM's growth strategy and in part enables the company to continue to look at acquisition opportunities.



"We are excited to support RxDM's platform as they execute on their growth strategy to expand across the country," stated Claude Miron, VP 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 building a national network of pharmacies in Canadian communities that puts the focus on the needs of patients, pharmacists, staff and communities," said Brian Dawson, CEO RxDM. "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."



The equity investment was 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 more than 40 pharmacies across the country.



"We are delighted to continue to support a high-growth company focused on high quality patient care across the country," commented Stuart Elman, managing partner of PCP.



BDC Capital's investment in RxDM is part of the Bank's initiative announced in June to invest $250 million of growth equity over the next five years into mid-sized, high-growth businesses with a strong track record of positive cash flow. The initiative aims to fill a financing gap in the market, as smaller companies scale in size.