Centric Health Corporation ("Centric Health" or "the Company") (TSX: CHH), Canada's leading diversified healthcare company, today announced that it has acquired the business of Community Advantage Rehabilitation Inc. ("CAR"). CAR is a privately held Home Care company specializing in the delivery of occupational therapy, physiotherapy, social work and dietitian services to adults and children in their homes and schools.
The total consideration to be paid for the acquisition will be approximately $2.0 million, consisting of $500,000 of cash and the balance to be settled by way of approximately 2.1 million shares in Centric Health, issued in equal tranches, subject to the business attaining $1.5 million of EBITDA(1) over a three year period. The transaction is expected to be accretive to Centric Health's earnings per share in 2011. Centric has also issued warrants to the vendors which are exercisable at the end of three years, for up to one million shares of Centric Health, depending upon how the business outperforms on the EBITDA target.
"The acquisition of CAR represents a valuable strategic investment for Centric Health," said Dr. Jack Shevel, Chairman and Interim President and Chief Executive Officer of Centric Health Corporation. "It is the first major step in developing the Company's Homecare platform and adds valuable expertise that will allow us to grow this division organically, as well as through other mergers and acquisitions".
The acquisition of CAR compliments Centric Health's Active Health Services business and pre qualifies Centric Health to offer an extended range of homecare services such as occupational therapy, physiotherapy, social work, dietitian, nursing and personal support services to Community Care Access Centres in Ontario.
Centric currently holds the largest market share for the provision of rehabilitation services in Long Term Care and Retirement Homes in Ontario. Importantly, this Homecare platform is a key development towards expanding our service offering, and addressing governmental efforts to facilitate seniors aging in the home.
This transaction has received all necessary governmental approvals and conditional approval from the TSX.
Source: CENTRIC HEALTH CORPORATION