Better Choice To Buy SRx Health Solutions For $125 Mln

(RTTNews) - Better Choice Co. Inc. (BTTR), a pet healthcare company, announced on Tuesday that it has signed a deal to acquire SRx Health Solutions Inc., a Canadian healthcare service provider specializing in the Specialty Pharmacy segment, for around $125 million in an all-share transaction.

Michael Young, Chairman of Better Choice, said: "This is a transformational acquisition for Better Choice. Upon closing, there are immediate operational and growth synergies, estimated to be in excess of $1.7 million that we plan to implement to accelerate growth of the combine company."

Post transaction, SRx Health will own around 85 percent of the new company, while Better Choice will own approximately 15 percent.

As part of the transaction, to be closed in the fourth quarter, Better Choice will spin out 8 percent of the capital stock of its subsidiary, Halo, Purely For Pets, Inc., to Better Choice stockholders immediately prior to the effective time of the transaction.

The combined company will be led by Adesh Vora, CEO of SRx Health, as Chief Executive Officer of Better Choice. For 2023, SRx Health had generated C$161.5 million in revenue with C$11.4 million of pro forma Adjusted EBITDA.

The combined revenue and EBITDA for the full-year 2025, is expected to be around over $270 million, and more than $10 million, respectively.