Monday 11th October 2010
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Labour pool company Allied Work Force has entered into a conditional agreement to buy specialist healthcare provider Panacea Healthcare as part of a strategic move to broaden the company's operations.
Panacea, formerly known as Auckland Nursing Bureau, provides ACC-funded nursing and support services to the disabled and elderly in the Auckland and Central North Island regions. No details on the conditions or price were released, although AWF said it will be funded through cash and bank debt.
“AWF is an experienced employer and market leader in the supply of people,” said AWF managing director Simon Hull.
“The group has diversified to meet demand for workers across a growing range of sectors. Healthcare will fit into the group nicely.”
The company said that while it will acquire 100% of Panacea, it will operate as a partnership with existing management.
Hull said Panacea current earnings will be immediately earning accretive for AWF in the financial year to March 31 2011.
Under the partnership Trish Neal, the major shareholder and current managing director of Panacea, will become executive director of Panacea, and current executive director Jan Hilder will become managing director.
Shares in AWF last traded at 95 cents, down from a two-year high of $1 it reached last week.
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