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Healthia (ASX:HLA) looks to raise $60m for physiotherapy chain buy

The Market Online Deal Room
ASX:HLA
20 September 2021 14:30 (AEST)

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Healthia (HLA) is set to raise $60 million from investors to fund its acquisition of Australian-based physiotherapy chain, Back In Motion Health Group.

Shares in the healthcare ASX-lister entered a trading halt this morning, followed by an announcement disclosing the acquisition and capital raise to investors.

The parties have entered a binding agreement for the deal, under which Healthia will acquire Back In Motion and its 64 physiotherapy clinics throughout Australia and New Zealand for $88.4 million.

Consideration comprises $64.6 million cash, the issue of $16.1 million in Clinic Class Shares and the issue of $5.8 million of new shares upon completion and $1.9 million cash subject to deferred conditions following the acquisition.

According to Healthia, the acquisition positions the company as the “number one provider of physiotherapy services in Australia” and grants the company entry into Western Australian and New Zealand markets.

Back In Motion generated $62.9 million in underlying revenue and $12.3 million in underlying earnings before interest, taxes, depreciation and amortisation for FY21.

Healthia is offering up 33.3 million new shares across a fully underwritten institutional placement and subsequent 1 for 4.30 entitlement offer to raise funds for the acquisition.

Chief Executive Officer and Managing Director Wesley Coote said the acquisition marked an exciting chapter for the company.

“I’ve been thoroughly impressed in my dealings with all clinicians across the group and am confident they will continue to provide high quality care to our patients,” he said.

“In line with our stated growth strategy, the acquisition of BIM marks an exciting chapter for Healthia, adding significant scale to our Bodies & Minds division and expanding our geographical reach into other states and the New Zealand market.”

Prior to today’s trading halt, Healthia shares last traded at $2.20.

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