Information on the Target

SeaFort Capital has made a significant majority investment in The Medicus Group, marking the inaugural foray of Mable Health Inc. into the orthotics, prosthetics, and mobility aids sector. Founded in 1957 and headquartered in Montreal, Quebec, Médicus has established itself as a prominent provider of orthotic and prosthetic devices as well as mobility aids. The company operates a network of 19 clinics across Canada, employing over 250 professionals, which includes 145 specialized orthotists, prosthetists, and technicians dedicated to delivering superior healthcare solutions.

Under the new leadership structure, Michel Lanctôt, the General Manager of Médicus, will transition to the role of President of both Mable Health and Médicus. His leadership is anticipated to be pivotal in implementing a national expansion strategy for Mable Health, aiming to enhance the accessibility and quality of care across Canada. Mr. Lanctôt expressed enthusiasm for the partnership with SeaFort Capital, highlighting the company's robust operational record as a foundation for future growth.

Industry Overview in Canada

The orthotics and prosthetics industry in Canada has been characterized by a growing demand for advanced healthcare solutions that cater to a diverse population with varying mobility needs. With an aging demographic and an increasing prevalence of chronic conditions, the necessity for effective orthotic and prosthetic solutions is more pronounced than ever. This sector benefits from innovations that improve patient outcomes and quality of life, driving further investment and market interest.

Canada's healthcare system, underpinned by public and private partnerships, provides a unique framework for industry growth. The focus on patient-centered care and technological advancements creates opportunities for companies like Mable Health to integrate cutting-edge solutions into their service offerings. The potential for expansion through strategic partnerships and acquisitions further enhances the industry's attractiveness.

In recent years, there has been a surge in investment activity within the healthcare sector, particularly targeted toward businesses that align with enhancing patient care and operational efficiency. This trend is echoed in SeaFort's strategic decision to enter the healthcare market through its investment in Mable Health and Médicus, leveraging existing expertise and market presence to capture new growth opportunities.

Additionally, regulatory support and a favorable business environment in Canada foster innovation and attract investments. With ongoing advancements in technology and a shift toward personalized healthcare solutions, the orthotics and prosthetics space is poised for significant growth, making this an opportune time for Mable Health to capitalize on these dynamics.

The Rationale Behind the Deal

This investment represents a strategic move by SeaFort Capital to establish a strong foothold in the healthcare sector through a reputable entity like Médicus. The transaction aligns with SeaFort's strategy of executing a national buy-and-build initiative, enhancing the scale and capabilities of Mable Health. By integrating Médicus into its portfolio, SeaFort seeks to expand geographic reach and service offerings in a growing market.

Médicus' established operations and expert workforce provide an ideal platform for Mable Health to enhance its competitive position within the orthotics and prosthetics industry. Through this acquisition, SeaFort is poised to leverage MÉDICUS’ operational excellence to pursue further expansion in Canada, positioning the company as a leader in the healthcare market.

Information About the Investor

SeaFort Capital, based in Halifax, Nova Scotia, specializes in private equity investments focused on lower-mid-market Canadian businesses. With a commitment to growth and industry leadership, the firm invests in sectors such as business services, manufacturing, and healthcare. Currently managing the SeaFort Capital Fund II, which has commitments totaling approximately $189 million, SeaFort is dedicated to building long-term partnerships and fostering the growth of prominent Canadian companies.

By choosing to invest in Mable Health and Médicus, SeaFort underscores its interest in the healthcare sector, which represents a vital area for sustainable growth and impact. The strategic partnership with Mable Health positions SeaFort to make a significant contribution to the development of innovative healthcare solutions in Canada.

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The investment in Médicus by SeaFort Capital through Mable Health presents a compelling opportunity in the growing orthotics and prosthetics market. Given the increasing demand for mobility solutions, this acquisition allows Mable Health to build a robust presence within a sector that is not only essential for patient care but also ripe for expansion through strategic initiatives.

Furthermore, the experience and expertise of leadership figures such as Michel Lanctôt and Michel Coutu enhance the operational credibility of Mable Health. Their track record in the healthcare industry provides confidence in the company's ability to execute its growth strategies effectively.

As the healthcare industry continues to evolve, characterized by technological advancements and shifting patient demographics, Mable Health is well-positioned to adapt to these changes. The deal marks a strategic entrance into a sector with high growth potential, and with SeaFort's commitment to leveraging operational efficiencies and fostering strategic partnerships, the long-term prospects for Mable Health and Médicus appear promising.

Consequently, this investment could prove to be a strong addition to SeaFort's portfolio. By aligning with a market leader in orthotics and prosthetics, SeaFort is not only diversifying its investments but also contributing to the enhancement of patient outcomes, ultimately positioning itself as a key player in the evolving healthcare landscape in Canada.

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