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.
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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.
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