Key Takeaways
- • Audax Private Equity has entered into a definitive agreement to sell Lifemark Health Group, a Toronto-headquartered Canadian provider of outpatient physiotherapy and rehabilitation services, to Loblaw Companies Limited (TSX: L), according to a Business Wire release.
- • Audax partnered with Lifemark in December 2015, during which time Lifemark completed more than 50 acquisitions and expanded to over 300 locations across Canada with over 5,000 employees.
- • The sale is subject to regulatory approvals and customary closing conditions and is expected to close in the second quarter of 2022.
- • Harris Williams is serving as financial advisor to Audax, with Blake, Cassels & Graydon LLP and Kirkland & Ellis LLP acting as legal advisors.
Summary
Audax Private Equity announced on March 17, 2022 that it has signed a definitive agreement to sell Lifemark Health Group to Loblaw Companies Limited, the Canadian grocery and pharmacy retailer. Lifemark, headquartered in Toronto, provides outpatient physiotherapy, massage therapy, occupational therapy, chiropractic, mental health and other rehabilitation services. The company describes itself as Canada's largest physiotherapy company, with over 20 years of operating history, 3 million patient visits annually, and more than 5,000 clinicians, medical experts and team members across over 300 locations.
Audax first partnered with Lifemark in December 2015. Over that period, according to the release, Lifemark completed more than 50 acquisitions, broadened its service offering and expanded its national footprint, while investing in platform systems and key talent. Keith Palumbo, Managing Director at Audax Private Equity, said the outpatient physical therapy industry "remains highly fragmented and vast," and credited growth to facility utilization gains, geographic expansion, new services and acquisitions.
Peter Stymiest, Chief Executive Officer of Lifemark Health Group, said the company looks forward to its future "in partnership with Loblaw" and thanked Audax for supporting investment in physiotherapy and rehabilitation services in Canada.
The transaction remains subject to regulatory approvals and other customary closing conditions and is expected to close in the second quarter of 2022. Financial terms were not disclosed in the announcement. Harris Williams is financial advisor to Audax, while Blake, Cassels & Graydon LLP and Kirkland & Ellis LLP are legal advisors. Audax, which is investing out of its $3.5 billion sixth private equity fund, describes its Buy & Build strategy as a method for platform companies to pursue add-on acquisitions.
Audax first partnered with Lifemark in December 2015. Over that period, according to the release, Lifemark completed more than 50 acquisitions, broadened its service offering and expanded its national footprint, while investing in platform systems and key talent. Keith Palumbo, Managing Director at Audax Private Equity, said the outpatient physical therapy industry "remains highly fragmented and vast," and credited growth to facility utilization gains, geographic expansion, new services and acquisitions.
Peter Stymiest, Chief Executive Officer of Lifemark Health Group, said the company looks forward to its future "in partnership with Loblaw" and thanked Audax for supporting investment in physiotherapy and rehabilitation services in Canada.
The transaction remains subject to regulatory approvals and other customary closing conditions and is expected to close in the second quarter of 2022. Financial terms were not disclosed in the announcement. Harris Williams is financial advisor to Audax, while Blake, Cassels & Graydon LLP and Kirkland & Ellis LLP are legal advisors. Audax, which is investing out of its $3.5 billion sixth private equity fund, describes its Buy & Build strategy as a method for platform companies to pursue add-on acquisitions.
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