- CRH Medical Corporation ("CRH"), a wholly owned subsidiary of WELL Health, completes acquisitions of 51-per-cent stakes in both Northern Indiana Anesthesia Associates, LLC ("NIAA") in Indiana, and an add-on practice for FDHS Anesthesia, LLC ("FDHS") in Florida.
- NIAA's current estimated annualized revenue run rate is approximately US$2.1 million, while FDHS's current estimated annualized revenue run rate is approximately US$1.2 million. Both companies' combined revenue run rate of approximately US$3.3M has operating EBITDA margins of approximately 45%.
- These two accretive acquisitions mark CRH Medical's 35th and 36th transactions respectively and increase CRH's footprint to a total 75 ambulatory surgical centers across the United States.
- These acquisitions add 16 practitioners to CRH's team which had already exceeded 800 healthcare practitioners who are predominantly credentialed anesthesia providers.
WELL Health Technologies Corp. (TSX: WELL) (“WELL” or the “Company”), a company focused on consolidating and modernizing clinical and digital assets within the healthcare sector, is pleased to announce its wholly-owned subsidiary, CRH Medical Corporation (“CRH”), has completed two accretive transactions whereby the company has acquired a 51% stake in Northern Indiana Anesthesia Associates, LLC (“NIAA”) and an add-on practice in Bradenton, Florida which will be part of CRH affiliate, FDHS Anesthesia, LLC (“FDHS”).
“We are very excited to welcome both these teams to the CRH and WELL families as we continue to provide exceptional anesthesia services to patients in the states of Indiana and Florida,” commented Dr. Tushar Ramani, CEO of CRH. “This marks our fifth and sixth transactions of 2021 and we are excited to continue growing and strengthening our anesthesia footprint.”
NIAA provides anesthesia services to an ambulatory surgical center in South Bend, Indiana, and represents CRH’s 35th transaction. The acquisition of NIAA is expected to be immediately accretive to CRH’s cashflows, with an estimated current annual revenue run-rate of approximately US$2.1 million with operating EBITDA margins of approximately 45%.
This Bradenton, Florida add-on to FDHS provides anesthesia services to an ambulatory surgical center and represents CRH’s 36th transaction. The acquisition is also immediately accretive to CRH’s cashflows and represents an estimated current annual revenue run-rate of approximately US$1.2 million with operating EBITDA margins of approximately 45%.
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“We are very pleased to be executing on our acquisition opportunities and continuing to solidify our position as a leading anesthesia service provider in the US,” said Jay Kreger, President of CRH Anesthesia. “This is our second and third acquisitions respectively since joining WELL and we look forward to continuing to personify WELL’s highly accretive and disciplined growth and capital allocation strategy.”
Footnotes:
Earnings before interest, taxes, depreciation, and amortization (“EBITDA”), and EBITDA Margin are each Non-GAAP measures. EBITDA should not be construed as alternatives to net income/loss determined in accordance with International Financial Reporting Standards (“IFRS”). EBITDA does not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers. The Company believes that EBITDA is a meaningful financial metric as it measures cash generated from operations which the Company can use to fund working capital requirements, service future interest and principal debt repayments, and fund future growth initiatives. For a reconciliation of EBITDA to Net income, please refer to the Company’s most recent Management Discussion and Analysis on Sedar.com. EBITDA Margin is EBITDA as a percentage of total revenue.
Notice Regarding Forward-Looking Statements
Certain statements in this news release are forward-looking statements and are prospective in nature including the statements regarding the anticipated benefits of the acquisitions and the future strategy of WELL and CRH. Forward-looking statements are not based on historical facts, but rather on current expectations and projections about future events, and are therefore subject to risks and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements. These statements generally can be identified by the use of forward-looking words such as “may”, “should”, “could”, “would”, “intend”, “estimate”, “plan”, “anticipate”, “expect”, “believe”, “working on” or “continue”, or the negative thereof or similar variations. There are numerous risks and uncertainties that could cause actual results and WELL’s plans and objectives to differ materially from those expressed in the forward-looking information, including risks outlined in WELL’s publicly filed documents available on SEDAR; business disruption risks relating to COVID-19; regulatory risks, including those related to healthcare, privacy, and data security; and integration risks relating to the acquired business on a post-closing basis, including any failure to realize expected benefits of the acquisitions. Actual results and future events could differ materially from those anticipated in such information. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, WELL does not intend to update these forward-looking statements.
Source: Biospace