Transactions & Cases Detail
CIBC acts as administrative agent on behalf of lenders for Centric Health Corporation in its C$30 million acquisition of Motion Specialties
February 13, 2012
30 Million CAD
On February 13, 2012, Centric Health Corporation acquired Motion Specialties Inc. Motion Specialties is comprised of the amalgamation of all 24 Motion Specialties businesses and locations in three provinces of Canada. The total consideration to be paid by Centric Health for Motion Specialties is based on a three-year performance-based formula, comprised of up to C$30 million in cash and the issuance of up to 12.5 million Centric Health common shares, a portion of which is to be released on achieving the actual EBITDA performance targets over a three-year period. Centric Health will also issue warrants to the vendors to purchase up to 7.5 million Centric Health common shares accrued based on outperformance of the total three-year EBITDA target.
Centric Health, headquartered in Toronto, Ontario, is a diversified healthcare company with investments in several niche service areas. Centric Health currently has operations in medical assessments, disability and rehabilitation management, physiotherapy and surgical centres, homecare, specialty pharmacy and wellness and prevention. In addition, Centric's Home Medical Equipment Division under the MEDIchair brand has 70 stores across Canada.
Motion Specialties, headquartered in Toronto, Ontario, is an independent Home Health Care vendor with a network of 24 stores in Ontario, Alberta and British Columbia. Motion Specialties provides a wide variety of mobility devices, including; wheelchairs, scooters, walkers, bathroom safety equipment, portable oxygen, CPAP, and home accessibility products such as stair lifts and home elevators.
McCarthy Tétrault LLP represented CIBC, as administrative agent on behalf of the syndicate of lenders for the acquisition, with a team led by Joel Scoler, and including Gregory Walters.