WELL’s CRH Medical Completes Majority Stake Acquisitions of Two Anesthesia Practices in the State of Florida
- CRH Medical Corporation (“CRH”), a wholly owned subsidiary of WELL Health, through its existing subsidiary CRH Anesthesia of Florida, LLC, has completed two majority stake acquisitions for 70% of Destin Anesthesia, LLC (“Destin”) and 51% of Pinellas County Anesthesia Associates, LLC (“PCAA”).
- Destin’s current estimated annualized revenue run rate is approximately US$3.0M with EBITDA margins(1) of nearly 40%, while PCAA’s current estimated annualized revenue run rate is approximately US$8.0 million with EBITDA margins(1) of approximately 50%.
- These two accretive acquisitions mark CRH’s 9th and 10th transactions, respectively, in FY2021 and increase CRH’s footprint to a total of 82 ambulatory surgical centers (ASCs) or endoscopy centers across the United States.
- These acquisitions also add 50 practitioners to CRH’s team which had already exceeded 800 advanced healthcare practitioners who are all anesthesia providers.
Vancouver, B.C. – October 7, 2021 - WELL Health Technologies Corp. (TSX: WELL) (the “Company” or “WELL”), a company focused on positively impacting health outcomes by leveraging technology to empower healthcare practitioners and their patients globally announced today that it’s wholly owned subsidiary, CRH Medical Corporation (“CRH”), has completed two accretive transactions whereby it has acquired 70% of Destin Anesthesia, LLC (“Destin”) and 51% of Pinellas County Anesthesia Associates, LLC (“PCAA”).
“We are very excited to expand our anesthesia service line with these two acquisitions. PCAA marks the largest group of healthcare practitioners we have welcomed to the CRH family this year,” commented Jay Kreger, President of CRH Anesthesia. “These two acquisitions mark our 9th and 10th transactions of 2021. Joining the WELL network earlier this year has strengthened our position as the anesthesia provider of choice for Gastroenterologists and outpatient centers.”
Destin provides anesthesia services to an ambulatory surgical center in Destin, Florida and represents CRH’s 38th transaction. The acquisition of Destin Anesthesia is expected to be immediately accretive to CRH’s cashflows, with an estimated current annual revenue run-rate of approximately US$3.0 million with operating EBITDA margins(1) of nearly 40%.
The West Florida based, PCAA provides anesthesia services to four (4) endoscopy ASCs and represents CRH's 39th transaction. The acquisition is expected to be immediately accretive to CRH’s cashflows and represents an estimated current annual revenue run-rate of approximately US$8.0 million with operating EBITDA margins(1) of approximately 50%.
- Earnings before interest, taxes, depreciation, and amortization ("EBITDA") and EBITDA Margin are each Non-GAAP measures. EBITDA should not be construed as alternatives to net income/loss determined in accordance with International Financial Reporting Standards ("IFRS"). EBITDA does not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers. The Company believes that EBITDA is a meaningful financial metric as it measures cash generated from operations which the Company can use to fund working capital requirements, service future interest and principal debt repayments and fund future growth initiatives. For a reconciliation of EBITDA to Net income, please refer to the Company's most recent Management Discussion and Analysis on Sedar.com. EBITDA Margin is EBITDA as a percentage of total revenue.
WELL HEALTH TECHNOLOGIES CORP.
Per: “Hamed Shahbazi”
Chief Executive Officer, Chairman and Director
About WELL Health Technologies Corp.
WELL is a technology enabled healthcare company whose overarching objective is to positively impact health outcomes to empower and support healthcare practitioners and their patients. WELL has built an innovative practitioner enablement platform that includes comprehensive end to end practice management tools inclusive of virtual care and digital patient engagement capabilities as well as Electronic Medical Records (EMR), Revenue Cycle Management (RCM) and data protection services. WELL uses this platform to power healthcare practitioners both inside and outside of WELL’s own omni-channel patient services offerings. As such, WELL owns and operates Canada's largest network of outpatient medical clinics serving primary and specialized healthcare services and is the provider of a leading multi-national, multi-disciplinary telehealth offering. WELL is publicly traded on the Toronto Stock Exchange under the symbol "WELL" and is part of the TSX Composite Index. To learn more about the Company, please visit: www.well.company.
This news release may contain "Forward-Looking Information" within the meaning of applicable Canadian securities laws, including, without limitation: information regarding the expected benefits of the acquisition. Forward-looking information is necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties, and contingencies. Forward-looking information generally can be identified by the use of forward-looking words such as “may”, “should”, “will”, “could”, “intend”, “estimate”, “plan”, “anticipate”, “expect”, “believe” or “continue”, or the negative thereof or similar variations. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause future results, performance or achievements to be materially different from the estimated future results, performance or achievements expressed or implied by those forward-looking statements and the forward-looking statements are not guarantees of future performance. WELL’s statements expressed or implied by these forward-looking statements are subject to a number of risks, uncertainties, and conditions, many of which are outside of WELL 's control, and undue reliance should not be placed on such statements. Forward-looking statements are qualified in their entirety by inherent risks and uncertainties, including: direct and indirect material adverse effects from the COVID-19 pandemic; adverse market conditions; risks inherent in the primary healthcare sector in general; regulatory and legislative changes; that future results may vary from historical results; inability to obtain any requisite future financing on suitable terms; any inability to realize the expected benefits and synergies of acquisitions; that market competition may affect the business, results and financial condition of WELL and other risk factors identified in documents filed by WELL under its profile at www.sedar.com, including its most recent Annual Information Form. Except as required by securities law, WELL does not assume any obligation to update or revise any forward-looking statements, whether as a result of new information, events or otherwise.
For further information:
Pardeep S. Sangha
VP Corporate Strategy and Investor Relations