Siena Lending Group closed a CAD$30 million ($21.8 million) credit facility to support the acquisition of Ottawa-based companies Ontario Medical Supply and Royal Drugs by Capital Health Partners. CHP will carry on and expand OMS’ medical service offering that targets the homecare patient population. Through its Royal Drugs pharmacy services business, CHP will continue to provide products and services to the community, physician and homecare markets.
Siena structured a creative financing solution that not only leveraged the asset values to assist with the acquisition but also to support working capital needs, through accordion facilities, as Capital Health Partners looks to grow into new markets and geographies. KPMG’s deal advisory group was engaged to assist OMS/Capital Health Partners with the capital raise and structuring to support the acquisition.
“Our financing will allow the legacy OMS/Royal Drugs businesses to continue to service the growing demand for medical and pharmacy services to the homecare population,” Duane Morrison, director of new business originations at Siena, said. “On behalf of the entire Siena deal team, we wish to the thank the company’s shareholders and management and KPMG for their confidence in us as Siena expands its strategic business financing solutions to support Canadian mid-market companies.”
“We look forward to working with Siena as we grow our diversified pharmacy services, medical supplies and equipment businesses,” Yves Portelance, CEO of Capital Health Partners, said. “It was important to us to find a financial partner that understands our business and can support us as we build Capital Health Partners into a leading national platform, and we are confident we have that in our partnership with Siena.”
