Business
Richards Packaging Income Fund announces acquisition of Clarion Medical Technologies
Richards Packaging Income Fund announces acquisition of Clarion Medical Technologies ...
About this update from Richards Group Inc.
[{"type":"text","content":"\n\n\n\nRichards Packaging Income Fund announces acquisition of Clarion Medical Technologies\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nTORONTO, June 1, 2020\n\n\n\nTORONTO, June 1, 2020 /CNW/ - Richards Packaging Income Fund (TSX: RPI.UN) (the \"Fund\") announces today the acquisition of all of the outstanding shares of Clarion Medical Technologies \"Clarion\"), a leading Canadian provider of medical, aesthetic, vision care and surgical equipment and consumables.  The purchase price of $64.4 million was financed by a $35.0 million increase to the term credit, a $2.9 million draw down on the revolving credit, $16.0 million of cash on hand and a $10.5 million holdback from the vendors.  This purchase price is subject to additional consideration contingent on Clarion's future earnings. Given the current economic environment, it is unclear whether the acquisition will be accretive to earnings in 2020.\n\"We are delighted with this acquisition because it represents a perfect strategic fit for Richards. Clarion continues to strengthen and expand our position in the healthcare market which has been the cornerstone for Richards Packaging since its inception\", commented Gerry Glynn, Chief Executive Officer of Richards Packaging.\n\"This strategic partnership is a reflection of Clarion's reputation as a leader in the Canadian medical space.\" commented Samson Ling, Chief Executive Officer of Clarion Medical.  \"Our relationship with Richards Packaging will allow Clarion Medical to leverage the considerable resources of Richards Packaging to continue the aggressive growth strategy in the healthcare space, bringing innovations to enrich the lives of Canadians.\"\nNewPoint Capital Partners acted as M&A advisor to the Fund and Valitas Capital Partners acted as financial advisor to Clarion.\nAbout Richards Packaging Income Fund\nThe Fund owns Richards Packaging Inc. (\"Richards Packaging\"), the leading packaging distributor in Canada, and third largest in North America.  Richards Packaging is a full-service packaging distribu...