Subsidiary of local grocery co-operative to hold majority stake in Canada’s largest chain of independent Canadian retail pharmacies controlled by licensed pharmacists
Calgary Co-op is further expanding its retail footprint by becoming the majority shareholder of Ontario-headquartered Care Pharmacies.
The acquisition falls within the scope of Co-op’s focus on growth in the health and wellness sector, CEO Ken Keelor said.
“We’ve been focused on growing in the health and wellness space now for a few years,” Keelor told Postmedia, highlighting acquisitions including a home health-care company and Calgary-based Community Natural Foods.
The purchase of Care Pharmacies is part of a larger strategy for Co-op to enter new retail sectors and grow its geographical footprint, both rooted in a desire to protect members’ investments, Keelor added.
“It’s really about diversifying our members’ investments so they’re not completely invested in one market, being Calgary, which can be very much a boom-and-bust market. . . . We’re derisking the members’ investment,” he said.
He expressed a similar sentiment with regard to entering new lines of business.
“Whereas other businesses might slow down or shrink, health and wellness will continue to grow and potentially replace revenues that come from those other lines of business in the long term,” Keelor said, referring to a timeline spanning decades.
Care Pharmacies, a group of independent retail outlets controlled by licensed pharmacists, is headquartered in Vaughn, Ont., and will continue to operate as a separate entity following the transaction, Co-op said.
In Western Canada, the chain has one location in Alberta, one in Saskatchewan and 15 in British Columbia. In total, it has 56 pharmacies in five Canadian provinces.
A number of these locations operate in smaller localities, and in some cases they are the only retailer in town, acting as a general store.
“They are the meeting place and the community hub for all kinds of interactions,” Keelor said.
Because Care Pharmacies retail outlets are mainly owned by people who live in or near where the stores are located, there’s a culture of caring for its customers that Co-op found desirable, he added.
Care Pharmacies CEO Ali Reyhany said Calgary Co-op and Care Pharmacies share similar values.
“As hubs within our communities, we know that Care Pharmacies will continue to be strong beacons of trust and service for Canadians and their health and wellness,” he said in a written statement provided by Co-op on Tuesday. “We have found a great partner in Calgary Co-op and look forward to continuing to grow our business across Canada.”
The transaction, financial terms of which were not disclosed for competitive reasons, is expected to close in the first quarter of 2024, subject to certain conditions and regulatory approval.
Co-op’s Care Pharmacies acquisition follows its purchase of Willow Park Wine and Spirits in January 2023, with new locations recently opening in Saskatchewan.
Co-op bought Community Natural Foods in November 2019, with the brand now operating one location in Edmonton.
NEW YORK (AP) — Shares of Tesla soared Wednesday as investors bet that the electric vehicle maker and its CEO Elon Musk will benefit from Donald Trump’s return to the White House.
Tesla stands to make significant gains under a Trump administration with the threat of diminished subsidies for alternative energy and electric vehicles doing the most harm to smaller competitors. Trump’s plans for extensive tariffs on Chinese imports make it less likely that Chinese EVs will be sold in bulk in the U.S. anytime soon.
“Tesla has the scale and scope that is unmatched,” said Wedbush analyst Dan Ives, in a note to investors. “This dynamic could give Musk and Tesla a clear competitive advantage in a non-EV subsidy environment, coupled by likely higher China tariffs that would continue to push away cheaper Chinese EV players.”
Tesla shares jumped 14.8% Wednesday while shares of rival electric vehicle makers tumbled. Nio, based in Shanghai, fell 5.3%. Shares of electric truck maker Rivian dropped 8.3% and Lucid Group fell 5.3%.
Tesla dominates sales of electric vehicles in the U.S, with 48.9% in market share through the middle of 2024, according to the U.S. Energy Information Administration.
Subsidies for clean energy are part of the Inflation Reduction Act, signed into law by President Joe Biden in 2022. It included tax credits for manufacturing, along with tax credits for consumers of electric vehicles.
Musk was one of Trump’s biggest donors, spending at least $119 million mobilizing Trump’s supporters to back the Republican nominee. He also pledged to give away $1 million a day to voters signing a petition for his political action committee.
In some ways, it has been a rocky year for Tesla, with sales and profit declining through the first half of the year. Profit did rise 17.3% in the third quarter.
The U.S. opened an investigation into the company’s “Full Self-Driving” system after reports of crashes in low-visibility conditions, including one that killed a pedestrian. The investigation covers roughly 2.4 million Teslas from the 2016 through 2024 model years.
And investors sent company shares tumbling last month after Tesla unveiled its long-awaited robotaxi at a Hollywood studio Thursday night, seeing not much progress at Tesla on autonomous vehicles while other companies have been making notable progress.
Tesla began selling the software, which is called “Full Self-Driving,” nine years ago. But there are doubts about its reliability.
The stock is now showing a 16.1% gain for the year after rising the past two days.
The Canadian Press. All rights reserved.
TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 103.40 points at 24,542.48.
In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.
The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.
The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.
The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.
This report by The Canadian Press was first published Oct. 16, 2024.
Companies in this story: (TSX:GSPTSE, TSX:CADUSD)
The Canadian Press. All rights reserved.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
Companies in this story: (TSX:GSPTSE, TSX:CADUSD)
The Canadian Press. All rights reserved.
Freeland says she’s ready to deal with Trump |
NASA astronauts won’t say which one of them got sick after almost eight months in space
43 monkeys remain on the run from South Carolina lab. CEO thinks they’re having an adventure
Freeland rallies a united front ahead of Trump’s return to White House
Deputy minister appointed interim CEO of AIMCo after Alberta government fires board
Montreal says Quebec-Canada dispute stalling much-needed funding to help homeless
S&P/TSX composite index down Friday, Wall St. extends post-election gains
Mitch Marner powers Matthews-less Maple Leafs over Red Wings
