WELL Health Closes US$372.9 Acquisition Of CRH Medical

WELL Health Technologies (TSX: WELL) last night announced the closing of its transaction to acquire CRH Medical Corp. The transaction, valued at US$372.9 million, is expected to improve the firms free cash flow as well as its presence within the United States.

CRH marks the largest acquisition to date for Well Health, with the company paying US$4.00 per share for total equity consideration of US$286.6 million. The price tag of the purchase climbs to the aforementioned $372.9 million once outstanding credit facilities assumed by Well are considered.

The purpose of the acquisition for Well was two-fold. First, the purchase enabled the company to gain access to the US healthcare market in a meaningful way, where CRH has access to 3,200 GI’s among others. Secondly, the acquisition represents an easy method for the company to grow its revenue inorganically – CRH saw Q4 2020 revenues of $36.8 million, and adjusted operating EBITDA of $16.1 million.

Following the close of the transaction CRH is to operate as the seventh business unit of Well under a wholly owned subsidiary.

Well Health Technologies last traded at $7.00 on the TSX.

Information for this briefing was found via Sedar and WELL Health Technologies Corp. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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