Shares in Healthia Ltd (ASX: HLA) are surging today after the health-based company announced a new acquisition.
At the time of writing, the Healthia share price is travelling north of 10% to $1.98 apiece.
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Healthia expands business portfolio
Investors are fighting to get a hold of Healthia shares following the company's latest addition to its growing portfolio.
According to the release, Healthia advised it has entered into a binding agreement to acquire Rothwell Physiotherapy.
A family-owned and operated clinic, Rothwell Physiotherapy is located on the north side of Brisbane. The facility, which services the wider Moreton Bay region, provides physiotherapy and exercise physiology for patients.
The upfront consideration for Rothwell Physiotherapy will be a cash payment of $1.3 million. In addition, a contingent consideration of $0.32 million will be available if pre-defined earnings targets are achieved.
The settlement of Rothwell Physiotherapy is conditional upon the transfer of property leases to Healthia and the approval of usual customary conditions.
It's expected that all conditions will be met and the acquisition completed on or before 30 November 2021.
Management commentary
Healthia managing director Wesley Coote said:
We are very much looking forward to welcoming the team at Rothwell Physiotherapy into the Healthia family. The addition of Rothwell Physiotherapy is in line with Healthia's stated growth strategy, and brings us one step closer to being the number one provider of physiotherapy services in Australia.
We have a strong acquisition pipeline in place for this financial year, underpinned by industry participants placing greater value on the support and stability that a larger group such as Healthia, can provide.
The company has projected the acquisition would contribute additional revenue of $2.13 million to Healthia. Furthermore, it estimates earnings before interest, tax, depreciation and amortisation (EBITDA) to come in around $0.36 million.
Healthia share price summary
Since listing on the ASX in September 2018, Healthia has grown its portfolio from 104 to 217 allied health businesses. Recent acquisitions include AllCare Physiotherapy, John Holme Optometry and Anytime Physio.
The company's shares are up 50% in 2021, and have more than doubled over the past 12 months.
