Information on the Target

Founded in Quebec in 1988, Orthofab is a prominent player in developing mobility solutions tailored to the specific needs of individuals with reduced mobility and their caregivers. The company designs, manufactures, and markets various types of specialized wheelchairs for geriatric clients, as well as custom posture components. In recent years, Orthofab has expanded its offerings to include quadricycles, care beds, and other equipment aimed at enhancing user autonomy and supporting their ability to remain at home.

Industry Overview in Canada

The rapid aging of Canada's population presents significant challenges for inclusion, equity, and healthcare services, putting pressure on the resilience and accessibility of these essential services. As the demographic landscape shifts, the demand for innovative mobility solutions will likely rise, compelling companies like Orthofab to adapt and grow.

Moreover, the emphasis on supportive technologies for the elderly is driven by an increased awareness of health equity issues. Health and wellness are becoming the focus of various stakeholders, which also spurs investment in sustainable and adaptable technologies that can meet evolving needs.

Orthofab stands out in this domain as a specialized provider that focuses on ergonomic and customizable products. The company’s commitment to offering adaptable wheelchair solutions and components enables more elderly individuals to maintain their independence and engage actively in community life.

With the Canadian healthcare system under strain, innovative solutions like those provided by Orthofab contribute not only to better health outcomes but also to cost efficiencies for the broader healthcare network. This positions Orthofab as an essential stakeholder in Canada's health sector, especially in times when quality care is paramount.

The Rationale Behind the Deal

This acquisition aims to bolster Quebec’s expertise in supporting individuals with reduced mobility while enhancing the company's growth trajectory. Fondaction joins Corporation Financière Champlain (CFC) to support Orthofab's leadership transition, as Marie-Andrée Lapierre takes the helm of the company from her father, Richard Lapierre, who has been integral to its development.

The financial backing from CFC and Fondaction will provide Orthofab with the necessary resources to innovate further and meet the increasing demand for sustainable, high-quality mobility solutions.

Information about the Investor

Corporation Financière Champlain is a Canadian private equity firm based in Montreal. It manages a diverse portfolio of private equity investments across Canada and the United States, focusing on delivering added value to its partners—small and medium-sized enterprises looking to expand domestically and internationally. Champlain aims to empower these businesses through equity financing, operational management expertise, and strategic guidance.

Fondaction, a pioneer in the Quebec investment landscape, represents a fund committed to the equitable and sustainable transformation of the economy. As a workers' fund initiated by the CSN, it has successfully mobilized significant resources, totaling over $3.77 billion as of May 31, 2024, supporting hundreds of businesses in making positive economic and social impacts.

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This investment marks a strategic move to bolster Orthofab's operational capacity and market presence. As the demand for mobility solutions grows alongside the aging population, the alignment of Fondaction and CFC with Orthofab positions the company for success in a critical and expanding market.

Moreover, the sustainability aspect of Orthofab’s products, which are designed to be adaptable and recyclable, aligns perfectly with current trends emphasizing environmental responsibility. This focus can reduce healthcare costs while benefiting the environment—an attractive proposition for investors today.

For investors, Orthofab represents a strong opportunity. The company's established history and commitment to quality enhance its potential for sustained growth. Given the demographic trends, the accessibility of healthcare services will remain in the spotlight, making Orthofab a compelling candidate for future investment.

In conclusion, the partnership between Fondaction and Champlain signals confidence in Orthofab's mission and products. It reflects an understanding of both the economic landscape and social responsibility, making this deal a promising venture in the long run.

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