Melbourne-based medical services company Capitol Health has acquired six medical clinics in Perth as part of a deal worth up to $20.3 million.
Under the deal, which also includes the acquisition of three Melbourne clinics, Capitol will pay $17 million in cash, with up to an additional $3.3 million payable under earn-out agreements with the sellers.
The Perth network comprises clinics across the metropolitan area – Imaging Central in Claremont, East Fremantle-based Integrated Radiology, Quinns Medical Imaging, Booragoon Radiology, Forrestfield Radiology, and Ellenbrook Radiology.
The clinic service offerings include sub-specialty intervention and pain management, Cardiac CT, and general radiology.
The new clinics are expected to contribute $16.5 million in revenue and $3.1 million in earnings before interest, taxes depreciation and amortisation on an annual basis, based on the FY19 forecast.
Managing director Andrew Harrison said the acquisitions represent Capitol’s entry into the Perth market.
“These acquisitions represent an exciting entry into a new geographic market and will be substantially accretive to earnings,” he said.
“The natural growth trajectory of these clinics and Capitol’s ability to add value make them very attractive.
“In addition, we are delighted to welcome a high calibre team of clinical staff into the Capitol network.
“These acquisitions are another major step forward for the company’s strategic and disciplined growth agenda.
“We continue to see a number of outstanding opportunities to acquire and integrate clinically and commercially strong businesses.”
Shares in Capitol finished up 1.6 per cent at 32 cents each today.
