Clairfield advises Richards Packaging Income Fund on the acquisition of Clarion Medical Technologies
Richards Packaging Income Fund (TSX: RPI.UN) acquired Clarion Medical Technologies, a Canadian provider of medical, aesthetic, vision care and surgical equipment and consumables.
Richards Packaging Income Fund (TSX: RPI.UN) completed the acquisition of all of the outstanding shares of Clarion Medical Technologies, a Canadian provider of medical, aesthetic, vision care and surgical equipment, and consumables. The purchase price of CAD 64.4 million was financed by a CAD 35.0 million increase to the term credit, a CAD 2.9 million draw down on the revolving credit, CAD 16.0 million of cash on hand and a CAD 10.5 million holdback from the vendors. This purchase price is subject to additional consideration contingent on Clarion’s future earnings.
Richards Packaging is 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.
Clarion Medical Technologies, founded in 1989, has grown to become one of Canada’s largest medical companies, offering high performance products for 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.
The acquisition will strengthen the position of Richards Packaging in the healthcare market, where its current platform includes Richards Pharma Solutions, Healthmark, and Dispill. It will also allow Clarion Medical to leverage the considerable resources of Richards Packaging to expand the reach of its healthcare innovations. Richards Packaging has a robust acquisition strategy and a committed debt facility of CAD 65 million and CAD 50 million accordion.
Clairfield International acted as exclusive financial advisor to Richards Packaging.
Clairfield’s role included a targeted acquisition search for Canadian healthcare and medical companies, whereby various screens and outreaches were conducted that led to the identification of Clarion Medical.
Following the acquisition search, Clairfield supported Richards Packaging through all aspects of deal evaluation and diligence. This included evaluating Clarion Medical’s financial statements and operations, meeting with management, assessing strategic and synergistic opportunities, negotiating deal terms and purchase price, and support with all closing documents.
Clairfield continues to advise Richards Packaging as it looks to acquire other Canadian healthcare and medical businesses.
Read more in the Q&A with Gerry Glynn, CEO of Richards Packaging, published in our Outlook 2021.
Healthcare
Acquisition
Advisor to the buyer
Services :
Mergers & acquisitions
Sectors :
Healthcare
Countries involved :
Canada