Savaria (TSX:SIS) is one of the global leaders in the accessibility industry. It provides accessibility solutions for the physically challenged to increase comfort, mobility, and independence. The company’s product line is one of the most comprehensive on the market. Savaria designs, manufactures, distributes, and installs accessibility equipment, such as stairlifts for straight and curved stairs, vertical and inclined wheelchair lifts, elevators for home and commercial use, as well as ceiling lifts.
It also manufactures and markets a comprehensive selection of pressure-management products for the medical market and medical beds for the long-term-care market. In addition, Savaria converts and adapts vehicles to be wheelchair accessible. Savaria records over 77% of the company’s revenue outside of Canada, primarily in the United States. It operates a sales network of some 500 dealers worldwide and 26 direct sales offices in North America, Europe, Australia, and China. Savaria employs approximately 1,400 people globally, and the company’s plants are located in Canada.
Accessibility segment
Through the company’s accessibility segment, Savaria designs, manufactures, distributes, and installs accessibility products such as stairlifts for both straight and curved stairs, vertical and inclined wheelchair lifts, and elevators for home and commercial use. The products are manufactured, assembled, and customized at Brampton, Ontario.
The products are offered through a network of over 500 dealers worldwide. The operation of a Chinese subsidiary allows Savaria to obtain competitive pricing on the company’s purchases. The company operates a network of franchises and corporate stores in which new and refurbished accessibility equipment is sold. The products are sold on both the commercial market and the residential market. The accessibility segment generated revenues of $257 million in 2020, representing approximately 73% of the total revenues of the company.
Patient-handling segment
In 2016, Savaria designed and launched an innovative ceiling lift product line. The products are designed to move patients safely from wheelchair to bed or bath areas using an overhead hoist. In 2017, Savaria acquired Span-America Medical Systems, makers of medical beds, therapeutic support surfaces, and pressure management products used in healthcare facilities such as long-term-care and nursing homes.
Span now sells the Savaria ceiling lift into the home care and institutional sales channels in North America. In 2019, Savaria completed the acquisition of Silvalea, a manufacturer of patient transfer slings and accessories. Silvalea specializes in the design and development of challenging and complex patient transfer solutions, with an extensive catalog of over 800 sling designs.
These acquisitions complement Savaria’s product offering and provides additional distribution channels for the patient-handling segment. This segment generated $79 million in revenue in 2020, representing approximately 22% of the total revenue of the company.
Adapted vehicles segment
Through the company’s adapted vehicles segment, Savaria converts and adapts minivans to facilitate the transport of mobility challenged people. The company’s product line-up includes models with rear entry, side entry, or dual entry. By adding a ramp and lowering the floor, minivans become accessible to people in wheelchairs. They can be used for personal or commercial purposes. This segment generated $17.9 million in revenue in 2020, representing approximately 5% of the total revenue of the company.
Overall, Savaria appears to be a great stock to own over the long term.
