(New York, NY) – Cortec Group (“Cortec”), a New York-based private equity firm which invests in middle-market healthcare, distribution, consumer, and specialty products and services businesses, is pleased to announce that its affiliate, Cortec Group Fund V, L.P. (“Cortec Fund V”), has sold CHSL Holdco, Inc. d/b/a Canadian Hospital Specialties (“CHS” or the “Company”) to affiliates of Flexpoint Ford, LLC (“Flexpoint Ford”). Terms of the transaction were not disclosed.
Based in Oakville, Ontario, CHS is a leading specialty distributor and manufacturer of medical and surgical products that serves Canadian healthcare facilities. The Company’s offering includes more than 8,000 products used in a wide array of clinical applications. The Company provides single-use and other medical products supplied by global medical device manufacturers as well as its own manufactured products, which are marketed under the proprietary MED-RX® brand. Additional information on CHS is available at www.chsltd.com.
Since Cortec acquired CHS in November 2013, the Company has grown organically and through six highly strategic acquisitions, meaningfully expanding and diversifying its product portfolio and vendor base while adding scale to CHS’ clinical sales organization. Michael Najjar, a Managing Partner at Cortec, stated, “Our investments to expand the Company’s leadership team, complete several transformative acquisitions and develop the sales and marketing teams and processes resulted in significant growth at CHS. During the time of our investment, we worked closely with management, and the business more than doubled in size.” Jeffrey Lipsitz, a Co-President at Cortec, added, “We are very pleased with the outcome for CHS’ shareholders and believe that Flexpoint Ford will be a terrific partner for CHS’ management team as they continue to execute on the Company’s growth initiatives.”
Mike Canzoneri, CEO of CHS, added, “Cortec has been an outstanding teammate for CHS and our management team over the last seven years. Their commitment to our long-term success has proven invaluable and enabled us to build a strong platform positioned for success.”
The Cortec team included Jeffrey Lipsitz, Michael Najjar, Allison Klazkin, Matthew Baker, and Sarah Whitney. CHS was advised in the transaction by Harris Williams LLC and TM Capital Corp., with Paul Hastings LLP and Gowling WLG serving as legal counsel.
About Cortec Group
Founded in 1984, Cortec invests in high value-added, middle-market healthcare, specialty products and services, and consumer businesses in partnership with owners and management teams who want to work with Cortec to drive growth and improve business fundamentals. Additional information about Cortec can be found at www.cortecgroup.com.
