Richards Packaging Income Fund (TSX: RPI.UN) completed the acquisition of all of the outstanding shares of Clarion Medical Technologies, a Canadian provider of medical, aesthetic, vision care and surgical equipment, and consumables. The purchase price of CAD 64.4 million was financed by a CAD 35.0 million increase to the term credit, a CAD 2.9 million draw down on the revolving credit, CAD 16.0 million of cash on hand and a CAD 10.5 million holdback from the vendors.  This purchase price is subject to additional consideration contingent on Clarion’s future earnings.

The Fund owns Richards Packaging Inc., the leading packaging distributor in Canada, and third largest in North America. The company was founded in 1912 and currently serves over 14,300 regional companies from 18 locations throughout North America.

Clarion Medical Technologies  specializes in aesthetic, otolaryngology, gynecology, urology and vision applications with products and services offered that include laser technologies, diagnostic equipment, skincare, dermal fillers, intra-ocular lenses, laser fibers, clinical education, laser safety, technical support, and regulatory and marketing services.

The acquisition will strengthen the position of Richards Packaging in the healthcare market, where its current platform includes Richards Pharma Solutions, Healthmark, and Dispill. It will also allow Clarion Medical to leverage the considerable resources of Richards Packaging to expand the reach of its healthcare innovations. Richards Packaging has a robust acquisition strategy and a committed debt facility of CAD 65 million and CAD 50 million accordion.

Clairfield International in Canada acted as exclusive financial advisor to Richards Packaging.

Read more about the transaction and Clairfield’s history of success advising public companies on their midmarket acquisitions here: Deal of the month: Richards Packaging