Healthia on a roll with latest acquisitions
Written on the 1 August 2019 by David Simmons
Diversified health business Healthia (ASX: HLA) has been on a buying spree of late, with today's acquisition of a suite of hand therapy clinics its latest purchase.
The group, chaired by former Greencross CEO Dr. Glen Richards, has acquired four specialty hand therapy clinics in Sydney for $3.5 million in total.
Group CEO of Physiotherapy Tony Ganter says the acquisition adds yet another service to the company's growing suite.
"The four specialty hand therapy clinics, which provide physiotherapy and occupational therapy for the hand and upper limb, complement our existing nine Extend Hand Therapy clinics in Queensland," says Ganter.
"We are pleased that we are able to expand these specialty services across the group."
The addition to Healthia's Extend Rehabilitation is just a part of the listed company's rapidly growing and comprehensive bundle of businesses.
In addition to Extend Rehabilitation, Healthia owns a portfolio of allied health businesses which include My FootDr, AllSports Physiotherapy, iOrthotics and D.B.S. Medical Supplies.
In the last six months the group has been on a buying spree, beginning in March with the acquisitions of two podiatry clinics in Sydney and Tasmania for $1.08 million in total.
The group has since announced the acquisitions of three physiotherapy clinics in South-East Queensland for $1.53 million.
In April the group announced it was acquiring two more physiotherapy clinics, one in South-East Queensland and one in Victoria as well as a podiatry clinic in New South Wales for a total of $1.9 million.
In June Healthia scooped up another two physiotherapy clinics, one in South-East Queensland and one in NSW, for $1.28 million.
And at the beginning of July the company announced the acquisition of nine allied health clinics: three physiotherapy clinics in South-East Queensland, three podiatry clinics in Queensland, and three podiatry clinics in Victoria. In total those acquisitions cost Healthia $5.6 million.
Over the last seven months the company has spent around $9 million on new clinics.
In the midst of this spending spree the company has seen its share price slowly deteriorate over the back end of FY19. But the announcement in early July has given Healthia's share price a new lease on life; since June 27, when the company's shares were at their lowest point of $0.78, the price has shot up to a current peak of $1.08.
During this continued period of acquisitions, the company has significantly changed its management structure at the behest of chairman Dr. Glen Richards.
Since listing on the ASX on 11 September 2018 Healthia had operated with two CEOs being Darren Stewart and Anthony Ganter.
"While the current leadership structure is proving effective at the divisional level, the board of Healthia has identified the need for the appointment of a group CEO who will be ultimately responsible for the future direction of Healthia," says Healthia.
As such, Wes Coote, the former CFO, was appointed as group MD and CEO; Chris Banks, the former chief commercial officer, was appointed as group CFO and company secretary; and Glen Evangelista, former COO Podiatry, was appointed as group chief commercial officer.
Stewart and Ganter were asked to remain as board members.
"After an internal review, the board felt the time had come to appoint someone to be ultimately responsible to all of Healthia's stakeholders, including investors," said Dr. Glen Richards.
Business News Australia
Author: David Simmons