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Jean Coutu Group buys stake in orthotics seller
December 3rd, 2012
LONGUEUIL, Quebec – Jean Coutu Group plans to acquire a 50% stake in Le Groupe Médicus Inc., a provider of orthotic and prosthetic devices.
Financial terms of the deal, announced Friday, weren't disclosed.
Médicus operates a network of 13 stores in Quebec under the banners of Médicus and Médicus Sport, and the company manufactures and distributes a broad range of orthopedic devices and rehabilitation and comfort products to orthopedic and prosthetic labs, rehabilitation establishments, and health care and physical activity professionals.
"The investment in Médicus fits with our development strategy and is an interesting expansion of our core business," François Coutu, president and chief executive officer of Jean Coutu Group, said in a statement. "Médicus enjoys an excellent reputation and presents a significant growth potential. This corporation is headed by an experienced management team, and we plan to support them in the pursuit of their strategic development plan."
Once the transaction is completed, Médicus will carry on its operations throughout its network of stores and maintain an independent management team, according to Jean Coutu Group.
"We are aware of the growing needs of an aging customer base in Quebec, and Médicus, in partnership with the Jean Coutu Group, wishes to extend its market share in orthotic and prosthetic devices, as well as in mobility assistance throughout Quebec and eventually North America," stated Jacinte Bleau, president and CEO of Médicus.
Jean Coutu Group operates a network of 404 franchised drug stores in Quebec, New Brunswick and Ontario under the banners PJC Jean Coutu, PJC Clinique, PJC Santé and PJC Santé Beauté. The company also owns Pro Doc Ltd., a Quebec-based manufacturer of generic drugs, and holds a stake holds roughly a 20% stake in Rite Aid Corp.