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Morneau Shepell exits clinic-based Occupational Health business

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Corporate / Canada

Morneau Shepell exits clinic-based Occupational Health business

Morneau Shepell to concentrate its absence management solutions line of business on providing employers with disability management and workers' compensation services


TORONTO, Oct. 14, 2014 /CNW/ - Morneau Shepell Inc. (the "Company" or "Morneau Shepell") (TSX: MSI) today announced that it 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 as it is a key part of the workers' compensation business in the region.

The exited business represents less than 5 per cent of overall Morneau Shepell revenue, and the impact of the exit on Morneau Shepell's earnings is immaterial.

"The decision to divest this part of the business is in keeping with the strategic direction of the Company," said 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. "We are increasing our focus on disability management and workers' compensation services, which complement our other capabilities and enable us to provide more integrated services to our clients."

The clinic-based occupational health business sold by Morneau Shepell provides medical services in remote areas, complex environmental settings, and off-site locations that include construction sites, mines, oil rigs, isolated northern regions, and offshore areas. The team will continue to provide these services under its new owners. "We don't expect any impact on operations in the short term as a result of the sale," said Salman.  "Our thanks go out to our former colleagues for all their past efforts and contributions, and we wish them continued success under new ownership."

About Morneau Shepell Inc.
Morneau Shepell is the largest company in Canada offering human resources consulting and outsourcing services. The Company is the leading provider of employee and family assistance programs, as well as the largest administrator of retirement and benefits plans and the largest provider of integrated absence management solutions in Canada. Through health and productivity, administrative and retirement solutions, Morneau Shepell helps clients reduce costs, increase employee productivity and improve their competitive position. Established in 1966, Morneau Shepell serves more than 20,000 clients, ranging from small businesses to some of the largest corporations and associations in North America. With approximately 3,500 employees in offices across North America, Morneau Shepell provides services to organizations across Canada, in the United States, and around the globe. Morneau Shepell is a publicly-traded company on the Toronto Stock Exchange (TSX: MSI). For more information, visit

SOURCE Morneau Shepell Inc.

For further information: Nathan Gibson, Corporate Communications, Morneau Shepell, 416-390-2641