Investment Highlights

1. Leading Provider of Essential Healthcare Supply Chain Services

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 22 of the top 25 global pharmaceutical manufacturers, and manage the finished goods distribution of approximately $7 billion in pharmaceutical product sales across Canada.

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

Our national platform comprises approximately 1.8 million square feet of capacity in 33 facilities across the country. We operate 28 facilities equipped with temperature control and monitoring systems, and five cross-dock facilities, owned by third parties, which expand the reach of our network. In addition, our highly customized fleet of vehicles offer temperature sensors and validated recording equipment to ensure that strict customer and regulatory requirements are met. The Crēdo thermal packaging solution also enhances our temperature management capabilities in a flexible and cost-efficient manner.

3. Technology Supporting a Comprehensive Service Platform

We have developed proprietary and scalable technology systems, Phoenix and ATLAS, which accumulate data and enable end-to-end monitoring of products. The Phoenix online portal 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 its network.

4. Partner of Choice for Leading Companies in the Healthcare Industry

Andlauer Healthcare Group has a strong track record of client retention, with an average client relationship of more than 15 years for its top 20 clients. We are the partner of choice for leading global pharma companies as well as wholesalers, retailers and distributors in the healthcare sector due to our operational excellence and differentiated service capabilities. We are integrated throughout the healthcare system, which helps to advance our flow of business.

5. Strong Financial Performance with Stable Cash Flows, Driven by Robust Growth and Attractive Margins

Andlauer Healthcare Group’s strong financial performance reflects our competitive strengths and important role in the delivery of supply chain services to the Canadian healthcare sector. Revenue has increased at a compound annual growth rate of approximately 10% since 2010, and 11% since 2016. EBITDA has also increased at a compound annual growth rate of approximately 11% since 2016, and the business generates strong and stable EBITDA margins. Profitability is supported by a business model that results in limited and highly efficient capital expenditures.

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

Our senior management team has approximately 150 years of combined experience in the logistics, transportation and healthcare industries, with an average tenure at the company of 12 years. The team has a track record of delivering profitable growth. We also have a strong employee culture that demands high levels of transparency and accountability. We utilize profit-sharing programs to ensure that employees’ interests are aligned with shareholders.