Loblaw to acquire Lifemark therapy and rehab clinics

The deal is meant to complement Shoppers' health services and give it a bigger place in the $11 billion physiotherapy market.
Loblaw Companies Limited-Loblaw to Acquire Lifemark Health Group

Through its subsidiary Shoppers Drug Mart, Loblaw is set to buy physiotherapy clinic Lifemark Health Group from Audax Private Equity.

In over 300 clinics across Canada, Lifemark provides outpatient physiotherapy, massage therapy, occupational therapy, chiropractic, mental health and other rehabilitation services. The company says it services over three million patient visits annually. Jeff Leger, president of Shoppers Drug Mart, said CEO Peter Stymiest “and the entire Lifemark team” will make the transition, with Lifemark remaining a distinct network of clinics within the company.

In Monday’s announcement, Loblaw described Lifemark as “the leading provider” in a physiotherapy and rehabilitation market worth upwards of $11 billion in Canada. For Shoppers, the deak is meant to add “a network of thousands of individual healthcare professionals, with distinct but complementary expertise” to what the company already offers on the health front.

In addition to its network of drug stores and pharmacies, Shoppers Drug Mart also operates The Health Clinic network of family medicine offices; the Wellwise network of stores focused on health products and devices for seniors; and a digital platform geared towards medical cannabis users. Loblaw has also been making investments into its PC Health app, which provides access to healthcare professionals in addition to virtual health and wellness programs.

“The acquisition of Lifemark strengthens our ability to support customers’ wellness, adding new categories of care,” said Leger. “We are creating a powerful combination that will reach more people and provide better health outcomes for more Canadians

Loblaw said the deal is worth an aggregate cash consideration of $845 million. The acquisition, which remains subject to regulatory approvals and customary closing conditions, is expected to close in the second quarter of 2022.