SYDNEY, AUSTRALIA: APM Human Services International Limited (ASX: APM) has entered into a binding agreement to acquire market leading physiotherapy and home care group, Lifecare.
The purchase price of $68 million will be funded from existing cash reserves, a news release noted. Completion of the acquisition is expected to occur in January 2022.
Lifecare is a market-leading healthcare clinic business with a strong national footprint of 47 clinics across NSW, VIC, QLD and WA
The acquisition of Lifecare will broaden APM’s existing Health and Wellbeing business through expanding the company’s Allied Health offering and geographic footprint.
The Lifecare team of 430 Allied Health professionals deliver physiotherapy and mobile health services from 47 clinics across Western Australia, Victoria, New South Wales and Queensland.
The acquisition has strong connectivity to APM’s Workcare business and complements its allied health and psychology assessment and intervention services; injury prevention, management and vocational rehabilitation services; and multidisciplinary therapy programs for early childhood, early intervention, school aged, adolescent and working aged populations.
Lifecare homecare provides in-home physiotherapy, occupational therapy, podiatry and lymphoedema services.
The acquisition of Lifecare will support APM’s mission to build Allied Health services across the lifespan, from infancy to ageing, and provides further expansion into home and community-based care.
For the financial year ended 30 June 2021, Lifecare generated $53 million of revenue with underlying EBITDA of $10 million after minority interests. Lifecare is expected to deliver organic growth and future integration opportunities going forward.
Commenting on the acquisition, APM CEO Michael Anghie said: “The acquisition of Lifecare adds scale and services in a key growth sector for APM. It allows us to expand our Allied Health service offering and reach through a combination of physical clinics, mobile and telehealth services, enabling access for our clients in metropolitan, regional and rural centres.
We look forward to welcoming Lifecare’s team into the APM family, providing additional services to our current clients, servicing more clients across Australia, and expanding our allied health services across the growing home and community care sectors.
“We expect our strong capital position to continue to enable us to pursue attractive growth opportunities as they arise, both organic and via M&A.”
With 800 sites spanning 10 countries (Australia, United Kingdom, Canada, United States of America, New Zealand, Germany, Switzerland, Spain, Singapore, and South Korea), APM’s more than 7,000 team members work to enhance community health and wellbeing, delivering services to clients across the early childhood, youth, employment, insurance, justice, veterans, disability, and aged care sectors.
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