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Functionalab Group and FYi Medical Aesthetics Announce Merger

November 18, 2022
November 18, 2022
Functionalab Group

L'Oréal-backed Functionalab Group and FYihealth group's Medical Aesthetics division announced the merger of their companies, creating the largest network of premium aesthetic medicine clinics with 68 locations across Canada.

WHO: Founded in 2009 by Francis Maheu and Erick Geoffrion, Functionalab Group operates a network of 31 aesthetic medicine clinics under the Dermapure and ProjectSkin MD banners, which distribute the Functionalab professional skincare line developed to support proprietary skincare protocols in clinics. Jouviance, their dermo-cosmetic brand developed by a dermatologist, is distributed in more than 2,000 outlets in Canada and in Asia.

L Catterton-backed FYi Medical Aesthetics is part of FYihealth group, Canada's leading diversified healthcare organization. FYi entered the medical aesthetics industry in 2019 with the acquisition of ReNue medical aesthetics clinics and has since grown through partnerships; the group now boasts over 35 established clinics across Canada.

WHY: FYi Medical Aesthetics and Functionalab Group are two companies of similar size with complementary visions and values. The merger capitalizes on the strength of each group; they are bringing together trusted management teams, complementary geographic footprints, strong brands, common values, and cultures that together create a powerful platform for continued industry leadership and elevated patient care. The merger will strengthen the groups' industry leadership and position it for continued expansion.

IN THEIR OWN WORDS: "Rare in life are the opportunities when the stars are so aligned in terms of purpose, strategic alignment, complementarity and timing," said Francis Maheu, co-founder and CEO of Functionalab Group. "Combining our activities with FYi Medical Aesthetics allows us to accelerate our common objectives of creating the most inspirational brands and the strongest platform in the industry."

"I have never been more excited for the future of aesthetic medicine. Our company is entering an amazing new chapter as we position ourselves to realize our vision," says Dr. Jason McWhirter, Head of FYi Medical Aesthetics. "Together, we will remain steadfastly focused on delivering the highest, physician-led standard of patient care."

"We will continue building the most trusted brands, empowering our patients and promoting self-confidence while establishing a new standard for responsible aesthetic care in the industry. This partnership will ultimately allow us to spread our coveted company culture and elevate the experience for our patients and our employees," added Marilyne Gagné, President of Dermapure and ProjectSkin MD clinics and founder of Dermapure.

"I'm proud of what our team has accomplished in medical aesthetics and full-heartedly believe that through this partnership with Functionalab Group we will create more value for all stakeholders in the industry," shared Dr. Alan Ulsifer, CEO of FYihealth group. "Watching our medical aesthetics business grow with a strong and trusted partner is both inspiring and a testament to how strong our business model truly is."

"Wellness, personal care and beauty are categories with strong secular tailwinds. As a proud partner to FYihealth Group since 2020, we are excited to support Functionalab Group, under the leadership of Francis, Jason and Marilyne, as a merged company, in its growth ambitions," added Rajan Shah, Principal at L Catterton.

DETAILS:

  • Functionalab Group and FYihealth group's Medical Aesthetics division will merge their companies. The terms of the deal were not disclosed. 
  • Leveraging complementary skills, the existing management teams from both businesses will join forces under one leadership team led by Francis Maheu and Dr. Jason McWhirter as co-CEOs and Marilyne Gagné as President of Dermapure and ProjectSkin MD. Dr. Alan Ulsifer will serve as Chair of the Board. 
  • The newly merged company will continue as Functionalab Group and benefit from its strategic partners and investors, L'Oréal (an existing partner to Functionalab Group through its corporate venture capital fund) and L Catterton.
  • The combined entity will operate its clinics under the Dermapure and ProjectSkin MD brands.
  • L'Oréal invested in Functionalab Group in 2019 through its venture capital arm, Bold Business Opportunities for Business Development.
  • In 2020, L Catterton invested in FYidoctors, a subsidiary of FYihealth Group.
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