Sonic Healthcare Limited (SHL) is pleased to announce that it has reached binding agreements to acquire the New South Wales/ACT, Queensland and Western Australian pathology businesses of Healthscope. The three businesses have combined annualised revenue of ~A$105 million. The total purchase price of A$100 million (cash & debt free) will be funded in AUD from Sonic’s existing debt facilities, and represents a prospective EBITDA multiple of less than 5 times on a post-synergy basis. Synergies, which have been conservatively forecast, are expected to be fully realised by the end of the first six months following completion of the acquisitions, from which stage the acquisitions will be accretive to both Sonic’s earnings per share and return on invested capital.
Sonic’s CEO, Dr Colin Goldschmidt said: “The acquisition of these businesses will be value accretive for Sonic’s shareholders and we will be pleased to welcome the pathologists, management and staff of the Healthscope businesses into Sonic’s global team”.