People Infrastructure acquires nursing recruitment firms
Written on the 2 July 2019 by Paris Faint
Less than two weeks after its initial announcement, People Infrastructure (ASX: PPE) has completed the $16.8 million buyout of nursing businesses First Choice Care and Carestaff Nursing services.
The acquisitions have bolstered People Infrastructure's growing health and community care business, and the company expects they will bring $3.4 million in earnings over the next 12 months.
The buyout was completed through cash reserves as well as proceeds raised from a $20 million share placement which was announced on 13 June.
Managing director Declan Sherman said the acquisitions represent a "logical extension" of the company's health and community care arm in Queensland.
"People Infrastructure will now be the leading health and community staffing business in Easters Australia through the aggregation of our niche nursing brands First Choice and Carestaff, Network Nursing, Victorian Nurse Specialists and Australia's leading community care managed workforce provider Edmen Community staffing solutions," he said.
"We are very excited with the platform People Infrastructure now has in the health and community care sector and the operating synergies and cross selling opportunities between our brands."
These latest acquisitions add to the string of buyouts which began with Halcyon Knights last month.
People Infrastructure bought the Brisbane-based workforce management tech company for $13.5 million on 3 June.
Halcyon is chaired by the founder of Greencross (ASX: GXL), successful investor and former Shark Tank 'shark' Dr Glen Richards.
First Choice and Carestaff, which have been operating for 14 and 20 years respectively, both have reputations as reliable providers of nursing staff to QLD Health public hospitals, private hospitals and residential care operators across the state.
First Choice operates primarily in the Brisbane and Sunshine Coast while Carestaff is a mainstay on the Gold Coast.
The management teams of both businesses will remain intact and continue to drive business growth.
PPE shares have been on a steady incline since the company listed in 2017. The stock closed at $3.23 yesterday.Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.
Business News Australia
Author: Paris Faint