People walk by a Loblaw grocery store in Toronto in this file photo.© Mark Blinch / Reuters
Loblaw Companies Ltd. is planning another acquisition in the health-care industry, offering $170-million to buy a B.C.-based company that provides secure medical records technology.
The Canadian grocery and pharmacy giant is offering $3.10 cash per share of QHR Corp. of Kelowna, B.C. – 22 per cent above the stock's closing price Friday on the TSX Venture Exchange.
Loblaw says QHR is a "natural complement" to its Shoppers Drug Mart business – which operates Canada's largest retail network of pharmacies.
RBC Dominion Securities analyst Irene Nattel said in a note that the transaction is not expected to be material to Loblaw's results, but should be a nice complement to the company's existing pharmacy and health care operations.
QHR currently supports 7,700 health care providers with a suite of secure medical records technology.
Its board of directors is supporting the Loblaw takeover bid but the deal requires approval from at least two-thirds of the votes cast by QHR shareholders at a special meeting to be held in October.