Richards Packaging Income Fund announces acquisition of Clarion Medical Technologies
Richards Packaging Income Fund (TSX:RPI-UN.TO) (the "Fund") announces today the acquisition of all of the outstanding shares of Clarion Medical Technologies "Clarion"), a leading Canadian provider of medical, aesthetic, vision care and surgical equipment and consumables. The purchase price of $64.4 million was financed by a $35.0 million increase to the term credit, a $2.9 million draw down on the revolving credit, $16.0 million of cash on hand and a $10.5 million holdback from the vendors. This purchase price is subject to additional consideration contingent on Clarion's future earnings. Given the current economic environment, it is unclear whether the acquisition will be accretive to earnings in 2020.
"We are delighted with this acquisition because it represents a perfect strategic fit for Richards. Clarion continues to strengthen and expand our position in the healthcare market which has been the cornerstone for Richards Packaging since its inception", commented Gerry Glynn, Chief Executive Officer of Richards Packaging.
"This strategic partnership is a reflection of Clarion's reputation as a leader in the Canadian medical space." commented Samson Ling, Chief Executive Officer of Clarion Medical. "Our relationship with Richards Packaging will allow Clarion Medical to leverage the considerable resources of Richards Packaging to continue the aggressive growth strategy in the healthcare space, bringing innovations to enrich the lives of Canadians."
NewPoint Capital Partners acted as M&A advisor to the Fund and Valitas Capital Partners acted as financial advisor to Clarion.
About Richards Packaging Income Fund
The Fund owns Richards Packaging Inc. ("Richards Packaging"), the leading packaging distributor in Canada, and third largest in North America. Richards Packaging is a full-service packaging distributor targeting small- and medium-sized North American businesses. Richards Packaging has operated since 1912 and currently serves over 14,300 regional companies from 18 locations throughout North America.
About Clarion Medical Technologies
Clarion Medical Technologies is a leading Canadian provider of medical and aesthetic equipment and consumables to hospitals, aesthetic clinics and private medical practices. The company specializes in aesthetic, otolaryngology, gynecology, urology and vision applications with products and services offered that include: laser technologies, diagnostic equipment, skincare, dermal fillers, intra-ocular lenses, laser fibers, clinical education, laser safety, technical support, and regulatory and marketing services.
SOURCE Richards Packaging Income Fund
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SOURCE: Richards Packaging Income Fund
Gerry Glynn, Chief Executive Officer, Richards Packaging Inc., (905) 670-7760, email@example.com; Enzio Di Gennaro, Chief Financial Officer, Richards Packaging Inc., (905) 670-7760, firstname.lastname@example.org; Samson Ling, Chief Executive Officer, Clarion Medical Technologies, (519) 620-3900, email@example.com