Empower Clinics (CBDT.C) closed its acquisition of Lawrence Park Health and Wellness Clinic and numbered company, 1100900 Canada, doing business as Atkinson, today, according to a press release.
Empower decided to exclude the four Momentum Health locations originally structured as joint ventures with fixed royalty payments which didn’t meet their new Canadian expansion model. The exclusion was inconsequential and did not have any discernible effect on the final terms of the agreement.
“The closing of this acquisition is a significant milestone for both Empower and its shareholders that will provide Empower with both a growing accretive business as well as a winning business model with plans for immediate expansion across the Greater Toronto Area, the province of Ontario and then nationwide with at least 30 clinics in very rapid succession. This nationwide expansion plan is already taking shape with discussions for new locations with significant partners already at advanced stages. With this acquisition now officially complete, I am confident that we will have developments to report regarding our Canadian expansion in the very near future,” said Steven McAuley, chairman and CEO of Empower.
The acquisition includes three clinics in the Greater Toronto Area (GTA) with plans to expand their clinic-in-clinic model across Canada, as well as paramedical clinics based in the GTA with an existing client list of 20,000 patients.
This expansion will use a cost-effective model of opening clinics within clinics, or clinics within large scale partner facilities to provide paramedical clinics inside the location of a primary care facility. This model works to improve outcomes for both Empower and the facility partner in the following ways:
- Substantially improved care for patients of the primary care facility;
- Significantly reduced start-up costs for Empower;
- Immediate access to the large patient base of the primary care facility;
- Immediate rental income for the primary care facility.
The nationwide clinic rollout will start immediately with expansion in the GTA, and extend from there to the rest of Ontario, and then extend their standardized brand and technology platform throughout the rest of the provinces using Ontario as a base.