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Loblaw to Buy Shoppers Drug Chain
TORONTO — Loblaw Cos. here on Monday said it has agreed to acquire Shoppers Drug Mart, Canada’s largest drug store chain, for about $11.9 billion (U.S.).
July 15, 2013
2 Min Read
TORONTO — Loblaw Cos. here on Monday said it has agreed to acquire Shoppers Drug Mart, Canada’s largest drug store chain, for about $11.9 billion (U.S.).
“This transformational partnership changes the retail landscape in Canada. With scale and capability, we will be able to accelerate our momentum and strengthen our position in the increasingly competitive marketplace,” said Galen G. Weston, executive chairman of Loblaw. “This combination creates a compelling new blueprint for the future, positioning us to capitalize on important trends in society, from the emphasis on health, wellness and nutrition, to the imperatives of value and convenience.”
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Loblaw said it would retain the Shoppers name and operate it as a separate division of Loblaw. Shoppers operates 1,242 Shoppers Drug Mart and Pharmaprix stores across Canada, and also also licenses or owns 57 medical clinic pharmacies operating under the name Shoppers Simply Pharmacy (Pharmaprix Simplement Santé in Québec) and six luxury beauty stores operating as Murale. Shoppers also owns and operates 62 Shoppers Home Health Care stores.
Loblaw said the acquisition gives it a “powerful footprint in the important and growing small-urban store sector.” It also said it would expand Shoppers’ offerings to include Loblaw’s private label and convenience food.
"We are delighted to partner with Loblaw to leverage our combined strengths,” said Domenic Pilla, president and chief executive officer of Shoppers Drug Mart. “For our shareholders, this transaction provides significant and immediate value, as well as the ability to benefit from future upside by virtue of their continued ownership of shares in the combined company. ”
Loblaw said it would pay $33.18 (Canadian) in cash plus 0.5965 Loblaw common shares for each share of Shoppers.
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