Futuremed is a leading distributor of medical supplies and equipment to the long term care sector in Canada.

www.futuremed.com

Investment

C$25 million

Fund

ONCAP I

Period

February 2004 – January 2006

ONCAP Team

Mark Gordon
Mark MacTavish

Transaction Summary

ONCAP acquired a majority interest in Futuremed Health Care Products (“Futuremed”) in February 2004.

Business Description

Based in Concord, Ontario, Futuremed was Canada’s leading distributor of medical supplies and equipment to the Canadian long-term care industry. Futuremed sold more than 7,000 branded and private label products, most of which were disposable and recurring in nature. Products included nursing supplies, incontinence products, and specialized furniture and equipment.

Accomplishment and Outcome

Futuremed’s core business had been experiencing significant organic growth over an extended period of time as a result of strong demographic trends, increased government funding, increased market share, and new geographic and end-market entries. All of these trends were expected to continue for the foreseeable future. ONCAP’s thesis was to support the organic growth of the business and to explore strategic acquisitions that would allow Futuremed to consolidate its leadership position and add new complementary products and services.

In January 2006, Futuremed converted to an income trust and completed an initial public offering in which ONCAP sold 100% of its ownership, realizing $100 million in net proceeds, which represented a 4.0x gross multiple of capital invested and a 116.3% gross IRR over the two-year investment period.