Harris Williams Advises Canadian Hospital Specialties, Ltd. on its Sale to Flexpoint Ford, LLC

Rhea-AI Summary

Harris Williams advised Canadian Hospital Specialties (CHS) on its sale to Flexpoint Ford. CHS, a key player in Canada's healthcare supply chain, manufactures single-use medical products. Under Cortec Group's ownership, CHS experienced significant growth. The transaction reflects ongoing strong investment activity in healthcare distribution, especially due to its vital role during the COVID-19 pandemic. Flexpoint Ford, with over $4.3 billion in capital, aims to leverage CHS's market position for further growth. Harris Williams' expertise was pivotal in achieving positive outcomes for CHS shareholders.

Positive

• CHS has demonstrated significant growth under Cortec Group's ownership.
• The transaction indicates strong investor interest in healthcare distribution, particularly post-COVID-19.
• Harris Williams provided expert advisory services, leading to a successful sale.

Negative

• None.

Harris Williams, a global investment bank specializing in M&A advisory services, announces it advised Canadian Hospital Specialties, Ltd. (CHS), a portfolio company of Cortec Group Fund V, L.P. (Cortec), on its sale to Flexpoint Ford, LLC (Flexpoint Ford). CHS is a leading manufacturer, marketer and distributor of single-use and other medical products to Canadian healthcare facilities. The transaction was led by Paul Hepper, Cheairs Porter, Charles Busch and Bethel Hailemichael of the Harris Williams Healthcare & Life Sciences (HCLS) Group and Graham Gillam of the firm’s Specialty Distribution Group.

“CHS is a critical link in Canada’s healthcare supply chain. The company provides its global vendor partners with unmatched access across the Canadian healthcare market and delivers solutions for complex healthcare challenges faced by clinical end users,” said Cheairs Porter, a managing director at Harris Williams. “CHS has thrived under Cortec’s ownership and we look forward to seeing what CHS accomplishes in partnership with Flexpoint Ford.”

“We continue to see very strong investment activity in the healthcare distribution sector, especially for businesses that have played essential roles throughout the COVID-19 pandemic, further validating the role of world-class distributors in complex ecosystems and their value propositions,” said Graham Gillam, a director at Harris Williams. “Market leaders that provide value-added solutions, like CHS, will continue to attract significant interest from investors that are looking for truly differentiated business models.”

“We chose Harris Williams for its deep sector knowledge across both healthcare and distribution. The Harris Williams team’s experience, ability to articulate the CHS story and exemplary work ethic resulted in a superior outcome for the company’s shareholders. Harris Williams exceeded our very high expectations,” said Michael Najjar, a Managing Partner at Cortec.

CHS, established in 1967, is a privately held company located in Oakville, Ontario that serves customers in the acute hospital and non-acute healthcare space in Canada and internationally. CHS provides self-manufactured products (Med-RX brand) and third-party represented products across categories including respiratory, anesthesia, perfusion, interventional, biopsy, drainage, diagnostic imaging, pharmacy and general medical. The Med-RX line is produced in Oakville, Ontario and is predominantly single use, disposable trays and kits used in a variety of procedures such as IV starts, feeding, biopsy and thoracic drainage. All products are serviced out of three distribution facilities located in Oakville, Ontario and Vancouver, British Columbia.

Founded in 1984, Cortec invests in market-leading, middle market specialty consumer, distribution, healthcare, and specialty services and products businesses in partnership with entrepreneurs, families and management teams who want to work with Cortec to drive growth and improve business fundamentals.

Flexpoint Ford is a private equity investment firm that has raised more than $4.3 billion in capital and specializes in privately negotiated investments in the financial services and healthcare industries. Since the firm's formation in 2005, Flexpoint Ford has completed investments in more than 30 companies across a broad range of investment sizes, structures and asset classes. Flexpoint Ford is headquartered in Chicago with additional offices in New York.

Harris Williams, an investment bank specializing in M&A advisory services, advocates for sellers and buyers of companies worldwide through critical milestones and provides thoughtful advice during the lives of their businesses. By collaborating as one firm across Industry Groups and geographies, the firm helps its clients achieve outcomes that support their objectives and strategically create value. Harris Williams is committed to execution excellence and to building enduring, valued relationships that are based on mutual trust. Harris Williams is a subsidiary of the PNC Financial Services Group, Inc. (NYSE: PNC).

The Harris Williams HCLS Group has experience across a broad range of sectors, including healthcare providers; payors and payor services; outsourced pharmaceutical services; medical device supply chain; healthcare IT; and pharmacy. For more information on the HCLS Group and other recent transactions, visit the HCLS Group’s section of the Harris Williams website.

Harris Williams’ Specialty Distribution Group has experience across a variety of sectors, including automotive and heavy duty aftermarket; building products; consumer; electrical and communications; foodservice; healthcare; industrial; and technology. For more information on the firm’s Specialty Distribution Group, visit the Specialty Distribution Group’s section of the Harris Williams website.

Harris Williams LLC is a registered broker-dealer and member of FINRA and SIPC. Harris Williams & Co. Ltd is a private limited company incorporated under English law with its registered office at 8th Floor, 20 Farringdon Street, London EC4A 4AB, UK, registered with the Registrar of Companies for England and Wales (registration number 07078852). Harris Williams & Co. Ltd is authorized and regulated by the Financial Conduct Authority. Harris Williams & Co. Corporate Finance Advisors GmbH is registered in the commercial register of the local court of Frankfurt am Main, Germany, under HRB 107540. The registered address is Bockenheimer Landstrasse 33-35, 60325 Frankfurt am Main, Germany (email address: hwgermany@harriswilliams.com). Geschäftsführer/Directors: Jeffery H. Perkins, Paul Poggi. (VAT No. DE321666994). Harris Williams is a trade name under which Harris Williams LLC, Harris Williams & Co. Ltd and Harris Williams & Co. Corporate Finance Advisors GmbH conduct business.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210422006095/en/

FAQ

Who advised Canadian Hospital Specialties on its sale to Flexpoint Ford?

Harris Williams advised Canadian Hospital Specialties (CHS) on its sale to Flexpoint Ford.

What role does Canadian Hospital Specialties play in healthcare?

Canadian Hospital Specialties is a leading manufacturer and distributor of single-use medical products for Canadian healthcare facilities.

Why did Flexpoint Ford invest in Canadian Hospital Specialties?

Flexpoint Ford invested in Canadian Hospital Specialties due to its critical role in the healthcare supply chain and growth potential.

What was the focus of the transaction involving Canadian Hospital Specialties?

The transaction emphasized strong investment activity in healthcare distribution, especially during the COVID-19 pandemic.

What is the significance of the sale of Canadian Hospital Specialties for shareholders?

The sale represents a positive outcome for CHS shareholders, facilitated by expert advisory from Harris Williams.