PharmaCorp (PCRX) is an early-stage pharmacy roll-up with 16 stores and a 3,000+ store pipeline comprised of 1,150+ PharmaChoice banner locations (exclusive ROFR)…

… and 2,000+ McKesson stores. Its current network generates ~80% of its revenue from prescriptions, which has tailwinds from population aging…

… and upside from a combination of service expansion and long-term cost optimization. For deals that meet their criteria ($2M+ revenue, $350K+ EBITDA), management targets a 7.5-15% EBITDA uplift three years post-close…

… and a ~6x deal multiple, enabling it to fund M&A with equity at current prices if they ever bump up against their 2.5x leverage threshold.

It’s early days which brings risk, but with strong pharmacy and roll-up experience on the bench (StorageVault co-founder, Rexall, etc.) and a defined pipeline… we think it’s worth keeping an eye on.

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