Private hospital operator Pulse Health will spend almost $50 million to acquire seven medical centres across Australia and New Zealand.
The operator will gain five day surgeries across New South Wales, Victoria and Western Australia, and an acute hospital located on the west coast.
Further, Pulse has entered into an agreement with Evolution Healthcare to acquire Boulcott Hospital in New Zealand’s Hutt Valley.
The upfront consideration for the takeovers is $48.3m with potential earn outs subject to the 2016 and 2017 financial year performances.
Pulse said it was launching a fully underwritten $11.5 million share placement and a two-for-five non-renounceable entitlement offer to raise an additional $31 million to help pay for the acquisitions.
Pulse chairman Stuart James said the acquisitions set the company up for further expansion in the future.
“The acquisition of Boulcott Hospital provides a solid platform for growth into the very attractive New Zealand healthcare market, and opens up this additional growth pipeline,” Mr James said.
“The acquisition of the Australian day surgery facilities further enhances Pulse’s capability as a day surgery operator, as well providing a best in class beachhead in specialist endoscopy provision.”
The acquisitions follow Pulse’s unsuccessful bid for Vision Eye Institute earlier this year.
Managing director Phillipa Blakey said it was disappointing to miss out, but the recent acquisitions aligned with Pulse’s strategy more clearly than the failed bid for Vision Eye Institute.
The new additions increase Pulse’s portfolio to 15 facilities – with 413 beds and 28 theatres – making it the third largest day surgery operator in Australia (behind Cura and Vision Eye Institute).
It represents an accelerated expansion into Australia’s attractive day surgery and endoscopy sectors.
Pulse has acquired Healthwoods Specialist Centre (NSW), Hobson Healthcare Altona, Hobson Healthcare Werribee, Hobson Healthcare Sydenham (Victoria), Westminster Day Surgery and Waikiki Private Hospital (WA).
Boulcott Hospital in New Zealand is the only private hospital in Hutt Valley and is co-located with the public, 300-bed Hutt Hospital.
It has three operating theatres, 29 inpatient beds, a nine bed day-surgery suite and an endoscopy unit.
The acquisition of Boulcott is subject to approval from the New Zealand Overseas Investment Office, the Ministry of Commerce and the Ministry of Health.