Andlauer Healthcare Group Announces Nova Pack-NowPac Joint Venture
Andlauer Healthcare Group Inc. (TSX: AND) (“AHG” or the “Company”) announced today the launch of a new joint venture that will combine its packaging subsidiary, Nova Pack Ltd. (“Nova Pack”), with NowPac Inc. (“NowPac”), a privately-owned contract packaging company based in Toronto, specializing in healthcare packaging services.
This strategic collaboration aims to offer advanced contract packaging solutions to customers, leveraging both technology and automation, AHG’s extensive healthcare supply chain network across Canada, and the combined 65 years of expertise in contract packaging. The joint venture will be co-owned by Accuristix Inc. (“Accuristix”), AHG’s subsidiary, and NowPac’s controlling owners, Kris Calder and Andrina Calder, each holding a 50% stake in the venture. The financial terms of the deal were not disclosed, but AHG expects the joint venture to be immediately accretive to cash flow and earnings per share.
Founded in 1988, NowPac has built a strong reputation in the healthcare sector, offering contract packaging, display assembly, and re-packaging services. Its expertise enables fast market entry and scalability, aided by advanced technology and automation. Nova Pack, established in 1990, has similarly worked closely with healthcare companies to provide packaging assembly and secondary packaging services.
By merging these two organizations, the joint venture will have access to NowPac’s innovative technology solutions, which enhance the scalability of packaging services to meet a broader range of customer demands. AHG’s leadership in healthcare logistics through Accuristix, combined with its national supply chain network across Canada, positions the joint venture as a powerful player in optimizing healthcare supply chains for its customers.
Michael Andlauer, CEO of AHG, expressed excitement about the partnership, stating, “NowPac is highly regarded by our shared healthcare customers. Its focus on quality and compliance, coupled with a long track record of successfully delivering scalable, innovative solutions, makes NowPac an attractive strategic partner for us to drive growth in our packaging operations. Additionally, this collaboration provides an opportunity to add volume to our logistics, distribution, and transportation networks.” He further emphasized that the joint venture would provide customers with access to enhanced services, delivering greater value.
Kris Calder, President of NowPac, shared his enthusiasm for the partnership, saying, “Joining forces with AHG’s specialized transportation and healthcare logistics network is a game-changer. This collaboration will enable us to increase efficiency and provide end-to-end supply chain solutions for our customers.” He added that the shared values of integrity, accountability, collaboration, and empowerment would be central to the success of the integration, ensuring continued growth and a commitment to excellence.
The formation of the joint venture is expected to bring several advantages to the healthcare sector. The combination of NowPac’s packaging expertise with AHG’s logistics capabilities offers a unique opportunity for customers to benefit from integrated services that address various needs in the healthcare supply chain. By utilizing advanced automation and technology, the joint venture aims to streamline processes and reduce costs, while still ensuring compliance with industry regulations such as Health Canada and FDA standards.
With both Nova Pack and NowPac offering complementary services, the joint venture will be positioned to meet growing demand for efficient, scalable, and compliant packaging solutions in the healthcare industry. The collaboration between the two entities will also strengthen AHG’s broader supply chain network, facilitating the delivery of high-quality packaging solutions that meet the evolving needs of healthcare companies.
The partnership also addresses the increasing demand for supply chain efficiency in the healthcare sector, where regulatory compliance and timely delivery are critical. With its combined experience, expertise, and resources, the joint venture is expected to provide healthcare companies with a comprehensive range of packaging and logistics solutions that are cost-effective, reliable, and compliant with industry standards.
As the healthcare industry continues to grow, this joint venture will enable AHG and NowPac to respond to evolving customer needs with greater flexibility and innovation. The partnership is poised to play a key role in shaping the future of healthcare packaging and supply chain solutions, offering cutting-edge services that enhance both the customer and patient experience.
About NowPac:
NowPac is a contract packaging company with over 30 years of experience in providing expert packaging solutions for Consumer Packaged Goods and Consumer Healthcare companies. The company ensures compliance with Health Canada and FDA regulations, delivering high-quality and scalable services that meet the complex needs of its clients.
