Agility Health Consolidates a Profitable but Fragmented
VANCOUVER, British Columbia, Aug. 12, 2014 (GLOBE NEWSWIRE) -- David
Cole (54), a Seattle businessman, still plays competitive soccer and
that is taking a toll on his body. "In the last three year years I've
torn a quad muscle, a calf muscle and a tendon in my shoulder,"
explains Cole, "This has required multiple trips to the
Aging athletes are a key part of the "Grey Tsunami" that is flowing
into Rehab and Physiotherapy Clinics across the U.S. The $31 billion
market is growing at an annual rate of 6.1%.
Agility Health (TSX-V:AHI) has carved out a profitable niche in this
space, and the company has just announced a "transformative" deal which
is expected to increase annual revenues from about $65 million to pro
forma revenues exceeding $100 million. The current market cap of
Agility ($40 million) has not factored in the significant anticipated
revenue bump ($39 million) from the new acquisition.
The total acquisition consideration of $20.8 million cash is less than
5x the anticipated pro forma EBITDA of the entity and would expand
Agility Health operations to more than 200 sites across 26 states with
more than 1,800 employees providing services for approximately 2
million patient visits per year. The acquisition of the target will be
immediately accretive to Agility's earnings.
"The target company complements a key area of strategic growth," stated
Davidson, "It's a line of business that we are looking to further grow
in, and to specialize in. We believe we can advance their existing
client relationships for both company's benefit."
Agility Health currently operates 74 outpatient or onsite
rehabilitation locations in 17 states. The company also contracts
rehabilitative services to 41 hospitals and inpatient rehabilitation