Investment Highlights

1. Established Provider of Essential Supply Chain Services to Leading Companies in the Canadian Healthcare Industry

Andlauer Healthcare Group operates what management believes to be Canada’s only nation-wide network of temperature-controlled facilities, specialized vehicles, measuring and monitoring equipment, and trained personnel dedicated to providing supply chain services in the healthcare sector. We provide specialized transportation services to the top 25 global pharmaceutical manufacturers and manage the finished goods distribution of approximately $7 billion in pharmaceutical product sales across Canada. We are a partner of choice for leading wholesalers, retailers and distributors in the Canadian healthcare sector due to our operational excellence and differentiated service capabilities. We are integrated throughout the Canadian healthcare system, which helps to advance our flow of business. We have a strong track record of client retention, with an average client relationship of more than 15 years for our top 20 clients.

2. Coast-to-Coast, Closed-Loop Network in Canada Supported by Specialized Infrastructure

Our national platform in Canada comprises more than 2.2 million square feet of capacity in 37 facilities across the country. We operate 31 facilities equipped with temperature control and monitoring systems, and six third-party cross-dock facilities, which expand the reach of our network. Our specialized fleet of temperature-controlled vehicles are equipped with temperature sensors and validated recording devices to ensure that strict customer and regulatory requirements are met. Our Crēdo thermal packaging further enhances our temperature management capabilities in a flexible and cost-efficient manner. Across our coast-to-coast distribution network, we offer management of various temperature ranges, including ambient ground (15ºC to 25ºC), air (5ºC to 25ºC), cold chain (2ºC to 8ºC), ultra-cold (-70ºC) and heat (above 0ºC).

3. Truckload Coverage of the Contiguous 48 U.S. States

We expanded our footprint into the United States in 2021 with the acquisitions of Skelton USA Inc.(“Skelton USA”) and T.F. Boyle Transportation, Inc. (“Boyle Transportation”).  Through these U.S. subsidiaries, we provide specialized ground transportation services, primarily to the healthcare sector, across the contiguous 48 U.S. states. Skelton USA specializes in refrigerated healthcare products, while Boyle Transportation provides specialized transportation services to clients in the life sciences / healthcare sector (~ 78% of revenue) and government and defense sectors (~ 22% of revenue). Our U.S. operations have been growing rapidly, with expansive reach across the country.

4. Technology Supporting a Comprehensive Service Platform

We have made significant investments in information technology across our business to provide both internal and external visibility throughout our supply chain activities, and we are committed to maintaining and advancing technology solutions that meet the needs of our clients in the highly regulated healthcare sector.

We have developed proprietary and scalable technology systems, Phoenix and ATLAS, which accumulate data and enable end-to-end monitoring of products. Phoenix is an online order management system portal that provides clients with real-time visibility over their supply chain and aggregates data to provide them with valuable insights about their business. ATLAS, a shipping and tracking information management system, allows us to monitor the progress and temperature of each shipment in our network, with full scanning, tracing, rating, and reporting capabilities while products are in storage or transit. ATLAS’s track and trace system allows clients to attain temperature monitoring data and shipment status information, including pickup date and time, linehaul scans, out for delivery scans, delivery scans, proof of delivery and appointment details.

We have also recently implemented the Tecsys Itopia® platform, a best-in-class healthcare logistics ‘software as a service’ platform, that provides us with enhanced warehouse management and transportation management capabilities, as well as end-to-end analytics and business intelligence.

5. Strong Financial Performance

Our strong financial performance reflects our competitive strengths and important role in the delivery of supply chain services to the Canadian healthcare sector, and more recently, our entry into the U.S. specialized ground transportation market. Our revenue has increased at a compound annual growth rate of approximately 11.5% since 2010. From 2017 to 2021, our revenue increased by approximately 75% and EBITDA increased 105%1, while EBITDA margins averaged approximately 24.6%1 per year. Profitability is supported by a business model that results in limited and highly efficient capital expenditures.

1 Excluding a $37.9 million gain on the step acquisition of 51% of Skelton USA Inc. in 2021.

6. Experienced Management Team Aligned with Shareholders and Strong Employee Culture

Our senior management team has more than 150 years of combined experience in the logistics, transportation and healthcare industries, and a proven track record of delivering profitable growth. We foster a strong employee culture that demands high levels of transparency and accountability. We utilize profit-sharing programs to ensure that our employees’ interests are aligned with stakeholders.