TORONTO, Sept. 29 /CNW/ - Centric Health Corporation ("Centric Health" or "the Company") (TSX: CHH), Canada's leading diversified healthcare company, today announced that it has acquired, in partnership, two pharmacies ("the Pharmacies") located on the Southlake Regional Health Centre campus ("Southlake") in Newmarket, Ontario.
The total consideration to be paid for the acquisition will be approximately $7.0 million in cash. The Pharmacies generate annual revenue of approximately $6.2 million and yield a market related EBITDA margin of 15-20%. The transaction is expected to be accretive to Centric Health's earnings per share in 2011.
"This is a significant step for Centric Health to invest in niche pharmacy services as it implements its strategy of expanding into new healthcare sectors," said Dr. Jack Shevel, Chairman and Interim President and Chief Executive Officer of Centric Health Corporation. "We look forward to building on the solid reputation already achieved at Southlake and are committed to unwavering quality care to patients and staff with a focus on improving access and expanding the range of services."
The Southlake Regional Health Centre is a multi-disciplinary healthcare campus with a 380-bed regional tertiary care hospital, in the fastest growing region in Ontario. Southlake's high standard of care is delivered by more than 2,700 staff, 500 volunteers and is supported by over 460 physicians.
"Our region is growing at a remarkable rate and the people of Newmarket, including our large number of senior citizens, rely on the quality care provided by Southlake," said Debra Scott, President & CEO of the Newmarket Chamber of Commerce. "We welcome the investment Centric Health is making in our region and their commitment to further enhancing the services available in our region."
It is anticipated that all requisite approvals relating to this transaction will be received by September 30th 2010.
About Southlake Regional Health Centre
Southlake has proudly served Newmarket and northern York Region in Ontario for more than 85 years and has transformed itself into a "premier" regional tertiary centre.
For further information, please visit www.southlakeregional.org
About Centric Health
Centric Health's vision is to be Canada's premier healthcare company, providing innovative solutions centered on patients and healthcare professionals. As a diversified healthcare company with investments in several niche service areas, Centric Health currently has operations in medical assessments, disability and rehabilitation management, physiotherapy and hospital services, homecare and wellness and prevention. With knowledge and experience of healthcare delivery in international markets and extensive and trusted relationships with payers, physicians, and government agencies, Centric Health is pursuing expansion opportunities into other healthcare sectors to create value for all stakeholders with an unwavering commitment to the highest quality of care. Centric Health is listed on the TSX under the symbol CHH. For further information, please visit www.centrichealth.ca. Centric Health's strategic advisor is Global Healthcare Investments & Solutions, Inc. (www.ghis.us).
This press release contains statements that may constitute "forward-looking statements" within the meaning of applicable Canadian securities legislation. These forward-looking statements include, among others, statements regarding business strategy, plans and other expectations, beliefs, goals, objectives, information and statements about possible future events. Readers are cautioned not to place undue reliance on such forward-looking statements. Forward-looking statements are based on current expectations, estimates and assumptions that involve a number of risks, which could cause actual results to vary and in some instances to differ materially from those anticipated by Centric Health and described in the forward-looking statements contained in this press release. No assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur or, if any of them do so, what benefits Centric Health will derive there from.
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