Retail News Breaks Archives
Navarro lands financing as expansion rolls ahead
January 9th, 2012
MIAMI – In the midst of a multiyear growth plan, Navarro Discount Pharmacy has secured $65 million in financing from GE Capital.
The Miami-area drug chain said Monday that the funding, an asset-based credit facility from GE Capital Corporate Retail Finance, will be used to refinance debt and for general corporate purposes.
"GE Capital understands retailing and has a great deal of experience financing drug stores. This allowed us to secure the right capital structure to help build our business," Juan Ortiz, chief executive officer of Navarro, said in a statement.
In early December, Navarro announced the opening of its 30th drug store, in Homestead, Fla. The chain's next new location, one of more than 20 new stores planned under a three-year expansion program, is slated to open in Pembroke Pines, Fla., in the spring.
And in late November, Navarro said it was set to begin the chainwide roll out of its Vida Mia private label, believed to be the nation's first brand targeting Hispanics across all product categories. The retailer had announced the new brand in April.
Part of Navarro's growth strategy is expanding its wholesale and export business. Plans call for Vida Mia to be rolled out through Magellan Distribution Solutions, a Navarro wholesale and export subsidiary, and to be offered via a licensing program to other retailers with a strong Hispanic customer base. In February 2011, Navarro announced that Magellan acquired the assets of Buxco Inc. of Miami and that, with the deal, Magellan will be providing fulfillment solution services for a network of 150 independent retail pharmacies.
"Providing growth capital to retailers is one of our specialties," stated Jim Hogan, senior managing director at GE Capital Corporate Retail Finance. "Working with clients to understand their needs and structuring smarter financing to fuel their plans is what we do."