Loblaw makes a savvy buy

Article Excerpt

LOBLAW COMPANIES, $111.16, is a buy. The company (Toronto symbol L; Shares outstanding: 333.6 million; Market cap: $37.1 billion; TSINetwork Rating: Above Average; Dividend yield: 1.3%; www.loblaw.ca) has agreed to acquire Lifemark Health Group. The privately held firm operates over 300 clinics across Canada that provide physiotherapy, massage therapy, occupational therapy, chiropractic, mental health, and other rehabilitation services. Loblaw will pay $845 million for Lifemark when it completes the purchase in the second quarter of 2022. This acquisition will become part of the Shoppers Drug Mart unit, which already operates specialized clinics inside its stores as well as standalone locations. Lifemark will also be added to the company’s digital PC Health offering. Note: the new clinics should help spur customer traffic and sales at the drugstores. Loblaw Cos. is a buy. buy…