Morneau Shepell has completed a strategic review of its clinic-based occupational health business with a decision to exit the business.
As a result, the company closed certain locations and sold the rest of the business and health clinic locations in Canada to Horizon Occupational Health Solutions Inc., a newly formed portfolio company of Persistence Capital Partners.
The Montreal clinic recently acquired as part of the Groupe AST acquisition will continue to be operated by Morneau Shepell.
“The decision to divest this part of the business is in keeping with the strategic direction of the company,” says Zahid Salman, executive vice-president of Morneau Shepell responsible for the Ontario and Western Canada regions, as well as the absence management solutions line of business.
The exited business represents less than 5% of the company’s overall revenue, and Morneau Shepell expects that the impact of the exit on its earnings will be immaterial.