By Phil Boeyen, ShareChat Business News Editor
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Friday 26th October 2001 |
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ElderCare says the purchase price for the community pathology laboratory, which includes a subsidiary business in Nelson, is made up of $7.35 million in cash and $3.15 million in convertible notes.
A heads of agreement has been signed with the balance of due diligence and contract completion expected in December.
"The transaction represents ElderCare's first medical services acquisition and complements its existing retirement, aged care and rehabilitation businesses," says CEO, Alan Clarke.
"It is a significant step towards ElderCare's stated intention, first signalled at the company's annual meeting last year, to transition into a balanced healthcare and medical services provider."
The new Wellington acquisition, Medical Laboratory Wellington, has been in operation since 1932 and offers a full range of medical laboratory testing to the public, requesting doctors, hospital outpatients and private hospitals in Wellington, Paraparaumu and Porirua.
The Nelson business, Nelson Diagnostic Laboratories, serves 130 GP's, 12 private hospitals and nursing homes in Nelson and Marlborough.
Mr Clarke says both facilities are full service community pathology laboratories, and the combined operation is one of the three largest in New Zealand.
"The community pathology market is worth an estimated $180 million per annum, and community laboratories form a core part of the primary healthcare delivery mechanism.
"The acquisition fits ElderCare's strategy of acquiring well-managed, efficient healthcare and medical services businesses delivering to a high standard of quality, and keeping management in place."
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