International expansion on the horizon for visionary Quebec orthotics company
When podiatrist Ronald Perrault started Cryos Technologies in 1994, he believed he had a unique solution to treat debilitating foot problems. The common practice had always been to immobilize the foot using a plantar orthotic, but in his mind, carefully controlled movement was actually the answer to the problem. So the visionary set forth in designing and creating custom plantar orthotics that guide the foot in natural, corrective movements, enabling users to live an active lifestyle while correcting their biomechanical dysfunction.
After his untimely passing in 2003, two of Perrault’s protégés, podiatrists Philippe Legaré and Frédéric Gremillet, took over the business, along with entrepreneur John Stimpson. With Perrault’s philosophy governing their actions, the team put plans in motion to scale the business, and today, they’re poised to launch operations in Ontario and the United States, thanks to new state-of-theart technology designed and created in Joliette, Quebec, where the company is based.
“We’ve come up with a 3D scanning device that entirely replaces the need for a physical mould to create the orthotics,” Stimpson said. “Traditionally, it was almost an artisanal process, but now as soon as we go digital we can make them much more efficiently by using automation, and we’ll no longer be bound by the geographical limitations caused by the moulding process, which means we envision doing much greater volume.”
The 3D technology is in the final phase of development now, with production expected to begin in November, and entry into the US market pegged for January.
In order to help the ambitious team acquire the resources they needed to create the new technology, Stimpson worked with Desjardins Business, who had been a partner with the company since the very early days.
“When I came into the business in 2004, I had never worked with Desjardins before and so I had the expectation that the account manager would change every year or so, which isn’t uncommon in the industry,” Stimpson said. “But I’ve been with Serge Vanasse, our account manager, for about 15 years now and the longevity of our relationship and the bilateral trust we have is truly unique and critical to our success.
“To be able to consider your bank as a true partner in the growth of your business is a real bonus,” he added.
“I’ve been with Cryos since 2002, so almost from the beginning,” Vanasse said. “Back then it was very small and Mr. Perrault worked almost alone; now it’s a big production, and it has been incredible to be a part of the transformation of the business.”
Among the many ways in which Desjardins has assisted the company, helping to ensure that the key shareholders in the business remain in control has been hugely important.
“Serge has been extremely creative and proactive in anticipating our needs and making sure that the solutions he offers have always been maximized,” Stimpson said. “That’s how he has enabled us to grow without having to go the route of venture capital, which can often lead to the risk of losing control of the business.”
Seven years ago, Vanasse had the foresight to introduce Stimpson to Martin Perreault, senior investment manager with Desjardins Capital.
“Vanasse said, ‘one day you’ll need investment dollars,’ and turns out he was right,” Stimpson said.
“We put in work in trying to guide John to get the financing he needed to grow the company, and finding the right moment to step in as an investor and provide some value to the existing share holders,” Perreault said. “We waited six years, working with the company throughout, until we found the right time.”
Last December, Desjardins Capital invested in Cryos by buying 20 per cent of the business through a private equity fund.
“The company had tremendous growth potential and needed capital to go forward,” Perreault said. “Now we have certified the technology, approved patents in the US, major technological developments are coming, and we’re going to start entering the US clinic network at the beginning of next year. I truly believe this is going to be a disruptive business in the industry because it’s top of the line technology, it’s scalable, and gives Cryos the clear competitive advantage it needs to become a world leader in the space.”
“Thanks to the digital scanner, we’re basically entering into a new world overnight,” Stimpson said. “The sales potential is enormous, even if we just scratch the surface, I imagine US sales will dwarf our Quebec business within three to five years.”
Of the 260 podiatrists in Quebec, 20 per cent have adopted Cryos’ technology. In the US, there are over 200,000 practicing podiatrists/postural professionals.
Since Stimpson, Legaré and Gremillet took over the business in 2004, sales have quadrupled, and the operation now employs 50 people. The expectation moving forward is for growth to expand at exponential rates, while keeping the business where it all started in Joliette.
“Everything we have developed and created has been done here, it’s 100 per cent Quebec-based technology,” Stimpson said. “I know we have something here that’s world-class and I think we’re going to surprise people with just how far we’re going to go.”
As for Desjardins’ role in the progress, Stimpson expects their partnership to continue to evolve with the business.
“They are so broad in their perspective of what constitutes a successful partnership because they go way beyond the bottom line and help us look at things like participating in the community in a positive way, job creation at the local level, and other social factors, too,” he said. “They’re always a positive participant in our plans and I know we will continue to need their guidance and support moving forward to make sure we can properly fund the activities we have coming up. They can undoubtedly help us open new doors and expand our network as we look into new markets.”