Bulletin: Well Health Technologies has agreed to buy CRH Medical for US$292.7 million
WELL Health has agreements in place to finance the transaction with a non-brokered private placement equity offering.
Well Health will pay US$4 per share for the Vancouver-based company.
Per Josh Scott, reporting in BetaKit:
The proposed acquisition of CRH Medical is part of WELL Health’s plan to consolidate and modernize clinical and digital assets in the healthcare sector, and acts a gateway towards its expansion into the US healthcare market. The acquisition is expected to close in Q2 2021.1
“This will be a monumental acquisition for WELL as it will significantly boost our revenue and EBITDA profile, dramatically enhance our U.S. operations, and provide us with additional inorganic and organic growth opportunities,” said Hamed Shahbazi, Chairman and CEO of WELL. “The proposed acquisition of CRH is a fantastic opportunity to apply WELL's expertise in digitization and modernization of healthcare clinics to GI practices in the United States. Furthermore, CRH's profitability and cash-flow generation will provide WELL with ample opportunities to allocate capital and grow without dilution.”2
CRH at a Glance
CRH provides GIs throughout the U.S. with innovative products and services for the treatment of gastrointestinal diseases including anesthesia services for patients undergoing endoscopic procedures at 69 ASCs and GI clinics across 13 states, representing approximately 440,000 annual cases (on a run-rate basis).