Traditional Therapy Clinics Limited
(ASX:TTC) has entered into contracts to acquire 3 new clinics from its franchised clinic base in China.
The acquisition will take the number of clinics owned by TTC to 22 and is in line with the company’s strategy of growing its owned clinic network and diversifying its revenue stream.
The 3 clinics will be purchased for a total of AU$4 million and represents an average EBITDA multiple of 2.3 based on the clinics’ earnings for the 2015 financial year.
TTC has a network of 326 clinics across China, with 15 new franchise agreements signed between January and May of this year.
Traditional Therapy Clinics Limited reported a net profit of $17.1 million at 31 December 2015.
