TORONTO – Andlauer Healthcare Group Inc. has acquired all of the issued and outstanding shares of TDS Logistics Ltd. (TDS) and McAllister Courier Inc. (MCI), two regionally focused temperature-controlled transportation businesses, from Andlauer Management Group Inc. (AMG) for a purchase price of approximately $15.9 million in cash, funded from existing cash flow from operations.
These acquisitions are expected to increase the reach of AHG’s services and expand its market presence in Ontario. Together, the two companies generated approximately $22 million of net revenue in 2019.
AMG initially acquired its interest in each of TDS and MCI in 2018 and 2015, respectively, and had contractual options to acquire the remaining stake in both companies that were exercised in September and May 2020, respectively. Following the exercise of such options, AMG offered the company the opportunity to acquire the businesses at a substantially similar valuation multiple to that paid by AMG.
“It made logical sense to acquire these partners as they complement the objective of broadening AHG’s network,” said Michael Andlauer, CEO of AHG. “We have a very clear sense of how to integrate the businesses into our operations because we have been collaborating with them for several years and have a number of common customers.”
The acquired companies
TDS is a dedicated ambient transportation service provider, with a fleet of 98 temperature-controlled vehicles. TDS provides dedicated deliveries to pharmacies, hospitals, and clinics in the Greater Toronto Area, with an extended reach to Hamilton, Barrie, Hanover and the Niagara region.
MCI is a logistics provider offering a wide range of transportation services from courier and LTL shipments to expedited and dedicated delivery service. Founded to meet the varied transportation needs of carriers and logistics providers within the Chatham – Windsor corridor, MCI has been serving its customers since 1993.
Goodmans LLP acted as legal counsel to AHG and Stikeman Elliott LLP acted as independent legal counsel to AHG’s special committee of independent directors. Feltmate Delibato Heagle LLP acted as legal counsel to AMG.
AHG’s 3PL services include customized logistics, distribution and packaging solutions for healthcare manufacturers across Canada. It also provides specialized transportation services, including air freight forwarding, ground transportation, dedicated delivery and last mile services.