The transfer of the licence to Pulse Health means the acquisition of the Eden Rehabilitation Hospital can now move to settlement, which is scheduled for 12 July 2012.
Eden is an established and profitable 36 bed rehabilitation hospital currently owned and operated by Sundale Garden Village, a not for profit community association based on the Sunshine Coast.
The facility is strategically located in Cooroy, Queensland, a 30 minute drive from the existing Pulse Health facility at Gympie.
Pulse Health previously signed a conditional contract to acquire the business and assets, and to lease the facility from Sundale for 10 years with a further 10 year option.
The consideration for the acquisition is $6.25 million, based on a standalone EBITDA of $0.75 million, with a further $200,000 in synergies expected to be derived by Pulse Health in the first 18 months.
Queensland is a region under serviced for rehabilitation and the acquisition provides the company with reduced risks, time and cost of developing clinical programs, recruiting specialist staff and developing referral patterns.
Importantly, the deal presents an attractive multiple for Pulse of 6.5 times EBITDA post $200,000 in synergies, as well as an improved balance sheet.
Early last month Pulse Health strengthened its balance sheet with the successful completion of a fully underwritten A$8.1 million capital raising to support the acquisition of Eden.
Demonstrating its growth in the private hospital sector, Pulse Health achieved profitability last year with a profit of $423,000 for the 2011 financial year.
The company has already surpassed that in just the first half of the 2012 financial year, generating $600,000 in profit.
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