Andlauer Healthcare Group Announces Joint Venture between Nova Pack and NowPac

TORONTO, March 3, 2025 /CNW/ - Andlauer Healthcare Group Inc. (TSX: AND) ("AHG" or the "Company") today announced that it has entered into a joint venture (the "Joint Venture") to combine its packaging subsidiary, Nova Pack Ltd. ("Nova Pack"), with NowPac Inc. ("NowPac"), a privately-owned, Toronto-based company specializing in contract packaging services for the healthcare sector. The Joint Venture, which is owned 50% by Accuristix Inc. ("Accuristix"), a subsidiary of AHG, and 50% by an entity controlled by NowPac owners Kris Calder and Andrina Calder, together, is expected to  provide customers with contract packaging solutions that leverage technology, automation, AHG's coast-to-coast healthcare supply chain network in Canada and 65 years of combined contract packaging experience. The Joint Venture will be led by Kris Calder, President of NowPac. The financial terms of the transaction were not disclosed. AHG expects the Joint Venture to be immediately accretive to cash flow and earnings per share.

Established in 1988, NowPac is a leader in delivering expert contract packaging, display assembly and re-packaging solutions for the healthcare sector, providing speed to market and scalability on demand, enabled by technology and automation. Since 1990, Nova Pack has partnered with healthcare companies to provide packaging assembly and secondary packaging services. NowPac's technology and automation solutions provide the Joint Venture with packaging scalability to address a broader range of customer demand. AHG's strength in healthcare logistics and distribution management through Accuristix, combined with its national supply chain network in Canada, positions the Joint Venture to provide flexible solutions that optimize the supply chain for healthcare customers.    

"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 to market, makes NowPac an attractive strategic partner for us to drive growth in our packaging operations, while also providing the opportunity to add volume to our logistics and distribution, and transportation networks," said Michael Andlauer, Chief Executive Officer of AHG. "Through our Joint Venture, we will provide customers with access to enhanced services and value."  

"Joining forces with AHG's specialized transportation and healthcare logistics network is a game-changer and will enable us to increase efficiency in end-to-end supply chain solutions for our customers," stated Kris Calder, President of NowPac. "Our shared values of integrity, accountability, collaboration and empowerment will support our integration and form an essential foundation for sustaining our commitment to excellence and continued growth."

About NowPac

With over 30 years of experience, NowPac delivers expert contract packaging solutions for Consumer Packaged Goods and Consumer Healthcare companies, ensuring compliance with Health Canada and FDA regulations. For more information on NowPac, please visit: www.nowpac.com 

About AHG

AHG is a leading and growing supply chain management company offering a robust platform of customized third-party logistic ("3PL") and specialized transportation solutions for the healthcare sector. The Company's 3PL services include customized logistics, distribution and packaging solutions for healthcare manufacturers across Canada. AHG's specialized transportation services in Canada, including air freight forwarding, ground transportation, dedicated delivery and last mile services, provide a one-stop shop for clients' healthcare transportation needs. Through its complementary service offerings, available across a coast-to-coast distribution network, AHG strives to accommodate the full range of its clients' specialized supply chain needs on an integrated and efficient basis. The Company also provides specialized ground transportation services, primarily to the healthcare sector, across the 48 contiguous U.S. states. For more information on AHG, please visit: www.andlauerhealthcare.com 

Forward Looking Information 

This press release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking information") within the meaning of applicable securities laws, including statements regarding the anticipated benefits of the Joint Venture (including the extent to which it will be accretive and position AHG for future growth). In some cases, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "targets", "expects", "is expected", "an opportunity exists", "budget", "scheduled", "estimates", "outlook", "forecasts", "projection", "prospects", "strategy", "intends", "anticipates", "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or, "will", "occur" or "be achieved", and similar words or the negative of these terms and similar terminology. In addition, any statements that refer to expectations, intentions, projections or other characterizations of future events or circumstances contain forward-looking information.

Statements containing forward-looking information are not historical facts but instead represent management's expectations, estimates and projections regarding future events or circumstances. This forward-looking information is based on our opinions, estimates and assumptions that, while considered by the Company to be appropriate and reasonable as of the date of this press release, are subject to known and unknown risks, uncertainties, and other factors that may cause the actual results, level of activity, performance or achievements to be materially differentfrom those expressed or implied by such forward-looking information, including but not limited to: the risk that the Joint Venture will not perform in accordance with expectations; the risk that Nova Pack and NowPac may not be efficiently integrated or that synergies will not be realized; and those other risks discussed in greater detail under the "Risk Factors" section of our Annual Information Form which is available under our profile on SEDAR+ at www.sedar.com. If any of these risks or uncertainties materialize, or if the opinions, estimates or assumptions underlying the forward-looking information prove incorrect, actual results or future events might vary materially from those anticipated in the forward-looking information. Although we have attempted to identify important risk factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other risk factors not presently known to us or that we presently believe are not material that could also cause actual results or future events to differ materially from those expressed in such forward-looking information.

There can be no assurance that forward-looking statements will prove to be accurate as actual outcomes and results may differ materially from those expressed in these forward-looking statements. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, these forward-looking statements are made as of the date of this news release and, except as expressly required by applicable law, AHG assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

All of the forward-looking information contained in this press release is expressly qualified by the foregoing cautionary statements.

SOURCE Andlauer Healthcare Group Inc.