LifeHealthcare Distribution Pty Limited, has entered into an agreement, subject to certain conditions (refer below), to acquire all of the issued share capital of Medical Vision Australia Cardiology & Thoracic Pty Limited (“MVA”), a distributor in the Interventional Cardiology market
- LifeHealthcare has entered into an agreement to acquire 100% of MVA for a purchase price of approximately $9.0m. The Transaction is subject to satisfaction of a number of conditions precedent, including final completion of legal, financial and tax due diligence to the satisfaction of LifeHealthcare, LifeHealthcare obtaining debt financing to fund the purchase price, and completion of the renegotiation of the terms of the relevant contracts with MVA’s key suppliers. Completion of the Transaction is expected to occur in mid to late September 2015.
- This acquisition is consistent with LifeHealthcare’s growth strategy communicated to shareholders during the IPO process and in subsequent market updates, extending our existing presence in the Cardiology market.
- This acquisition extends LifeHealthcare’s existing presence in Interventional Cardiology and introduces a broader range of Percutaneous Cardiac Intervention (“PCI”) products providing both Diagnostic and Treatment options, specifically Intravascular Ultrasound (“IVUS”) and Frequency Flow Reserve (“FFR”).
- The PCI market in Australia is estimated to be approximately $100m in size and growing in the mid-single digit range. The trend in PCI is moving towards a combination of IVUS and FFR for improved patient outcomes. This provides LifeHealthcare with the scale and platform to grow further into the broader Interventional Cardiology market including Functional Heart.
- The acquisition has been funded from existing debt facilities and increases LifeHealthcare’s pro forma 30 June 2015 gearing ratio (Net Debt/EBITDA) to 1.6x.
- The acquisition will be immediately EPS accretive.
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