Care Health Group

Crédit Mutuel Equity, the private equity arm of Crédit Mutuel Alliance Fédérale, one of the largest banking groups in France, is pleased to announce its association with Care Health Group, a growing independent pharmacy network with about 40 locations primarily in Ontario and British Columbia. With a presence in Canada and formerly known as CIC Capital Canada, Crédit Mutuel Equity encompasses the growth capital activities for North America.

As an influential minority shareholder, Crédit Mutuel Equity intends to actively support the growth of Care Health in a market with attractive acquisition and consolidation opportunities, as well as organic growth potential. Crédit Mutuel Equity is investing $30 million – through a combination of capital and mezzanine financing – to support the Group’s ambitious growth and acquisition plan.

A highly concentrated Canadian pharmacy market

Approximately 4,000 of the 12,000 pharmacies across Canada are owned by independent pharmacists. Most of these owners are at or nearing the retirement age and this represents a significant opportunity for Care Health to scale its growth strategy. In recent years, and under the leadership of its manager, Ali Reyhany, Care Health has adopted a dynamic external growth strategy by integrating a dozen sales points per year. Care Health operates in a niche market: its pharmacies are located in rural areas, where competition is less intense. The overall Canadian pharmacy market is benefiting from growing health and patient life cycle support needs, driven by an aging population and the emergence of life-extending pathologies.

“As one of the leading independent pharmacy groups in Canada, Care Health represents a promising growth platform, and Crédit Mutuel Equity looks forward to actively working with the talented management team at Care Health to bring their growth strategy to the next level”, said David Dickel, Managing Director, Growth Capital, Crédit Mutuel Equity. “Crédit Mutuel Equity is committed to investing in Canadian companies at an advanced stage of growth, with scalable businesses and clear growth vectors – Care Health aligns well with our investment criteria.”

“With industry consolidation on the rise, Care Health has found the perfect partner in Crédit Mutuel Equity to build on our 13 year reputation for integrity and innovation. Ensuring that licensed pharmacists continue to manage their businesses resonates with our stakeholders. With the guidance and support of a strong financial partner, the Care-Crédit Mutuel Equity partnership will continue to make Care Health the purchaser of choice for pharmacy owners across Canada,” said Ali Reyhany, Managing Director of Care Health.

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