APM Human Services (ASX:APM) expands, acquiring Lifecare

• APM Human Services International (APM) acquires physiotherapy and home care group Lifecare for $68 million
• The acquisition will broaden APM’s existing health and wellbeing business through expanding the company’s allied health offering and geographic footprint
• The purchase price will be funded from existing cash reserves, with completion of the acquisition expected in January 2022
• APM shares are 2.23 per cent in the green, trading at $2.75

APM Human Services International (APM) has acquired physiotherapy and home care group Lifecare for $68 million.

The acquisition will broaden APM’s existing health and wellbeing business through expanding the company’s allied health offering and geographic footprint.

The Lifecare team of 430 allied health professionals deliver physiotherapy and mobile health services from 47 clinics across Western Australia, Victoria, New South Wales and Queensland.

APM said the acquisition will support the company’s mission to build on allied health services across the lifespan, from infancy to ageing, and provides further expansion into home and community-based care.

For the financial year ended 30 June 2021, Lifecare generated $53 million of revenue with underlying EBITDA of $10 million after minority interests. Lifecare is expected to deliver organic growth and future integration opportunities going forward.

The purchase price of $68 million will be funded from existing cash reserves, with completion of the acquisition expected in January 2022.

APM CEO Michael Anghie said the acquisition of Lifecare adds scale and services in a key growth sector for the company.

“It allows us to expand our allied health service offering and reach through a combination of physical clinics, mobile and telehealth services, enabling access for our clients in metropolitan, regional and rural centres.” Mr Anghie said.

“We look forward to welcoming Lifecare’s team into the APM family, providing additional services to our current clients, servicing more clients across Australia, and expanding our allied health services across the growing home and community care sectors.”

The company said it is performing in line with management expectations and on track to deliver on its prospectus forecasts for the 2022 financial year, with any financial contributions from Lifecare additive to is predictions.

APM Human Services shares were 2.23 per cent in the green, trading at $2.75 at 1:32 pm AEDT.