Healthia (ASX:HLA) share price on watch after acquisitions update

The Healthia Ltd (ASX:HLA) share price will be on watch on Tuesday after the release of an update on recent acquisitions…

| More on:
changing asx share price from acqusition represented by man reaching out to touch acquisition sign

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Healthia Ltd (ASX: HLA) share price will be on watch on Tuesday following the release of an update after the market close.

What did Healthia announce?

This afternoon the healthcare company announced the completion of a couple of new acquisitions.

According to the release, the company has settled the $43 million acquisition of The Optical Company which was announced to the market on 30 October.

As part of the acquisition, the vendors have been issued with 9.4 million shares at an issue price of 95 cents. These will be held in voluntary escrow.

In addition to this, The Optical Company's founder and CEO, Colin Kangisser, has been appointed as the CEO of Healthia's newly formed Eyes & Ears division and as a director of Healthia.

Mr Kangisser founded The Optical Company in 2006 and is a registered optometrist with over 30 years' experience in the industry.

This acquisition is expected to contribute underlying revenue of $35.8 million, underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of $5.7 million, and underlying profit after tax of $2.8 million.

It is also expected to deliver ~15% underlying earnings per share accretion (excluding transaction and integration costs).

North Queensland Physiotherapy Centre acquisition.

Healthia has also revealed that it has completed the acquisition of North Queensland Physiotherapy Centre, which was announced on 29 October. North Queensland Physiotherapy Centre comprises three physiotherapy clinics in North Queensland.

The company agreed a fee of $1.34 million. This comprises an upfront cash consideration of $0.904 million and the issue of $0.4 million Healthia shares to the vendors. A contingent consideration of $0.35 million will become payable in cash within 36 months after completion, subject to businesses achieving EBITDA of greater than $0.38 million.

Management expects the clinics to generate revenue of $1.97 million and EBITDA of $0.275 million.

Investors certainly have responded positively to these acquisitions. Since their announcement, the Healthia share price is up almost 28% and trading within touching distance of its record high.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended HEALTHIA FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

A happy young couple lie on a wooden deck using a skateboard for a pillow.
Share Gainers

These were the best-performing ASX 200 shares in March

These shares made their shareholders smile in March thanks to some very big gains.

Read more »

Businessman using a digital tablet with a graphical chart, symbolising the stock market.
Opinions

2 ASX shares I have been buying in 2024!

I’m a believer in the long-term outlook of these stocks.

Read more »

Stock market chart in green with a rising arrow symbolising a rising share price.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a massive day for the ASX 200, with a new all-time high recorded.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Technology Shares

This ASX tech stock rocketed 60% in March! Can it keep on delivering?

After soaring in March, the ASX tech stock is now up 169% since this time last year.

Read more »

Broker Notes

Brokers name 3 ASX shares to buy now

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why Burgundy Diamond Mines, Clarity Pharmaceuticals, EML, and Zip are sinking today

These ASX shares are ending the week in the red. But why?

Read more »

A young women pumps her fists in excitement after seeing some good news on her laptop.
Share Gainers

Why Mesoblast, Newmont, Pilbara Minerals, and Platinum shares are jumping

These ASX shares are ending the week strongly. But why?

Read more »

a young boy dressed up in a business suit and tie has a cute grin and holds two fingers up.
Opinions

2 of my top ASX 200 shares to consider buying before April

I would happily exchange dollars for these two shares right now.

Read more »