EBOS enters agreement to acquire HPS
EBOS has entered into a binding agreement to acquire HPS, Australia’s largest provider of outsourced pharmacy services to hospitals, for a purchase price of A$154 million. This acquisition both complements and extends EBOS’ existing Australian hospital business and provides a new platform for expansion in this important market.
EBOS Group Chief Executive Officer, Patrick Davies said the acquisition of HPS is an important strategic investment as it provides the Group with a vertically integrated model in a market segment that has attractive long term growth prospects, including the continued introduction of new drugs.
The acquisition of HPS is expected to increase EBOS Group’s underlying EBITDA by at least 5% in FY18 and will be EPS accretive from year 1. The acquisition will be fully debt financed.
HPS (www.hps.com.au) has long term relationships and contracts with a number of key private hospital groups, correctional facilities, oncology and fertility clinics. HPS has grown strongly in recent years and its business model is underpinned by solid demand for outsourced pharmacy services. HPS has over 40 years’ experience in the provision of services to health facilities, offering tailored and responsive services which ultimately contribute to the delivery of individualised patient care.
“The acquisition of HPS continues EBOS’ history of expansion in both the Australian and New Zealand hospital markets where it is the leading provider of wholesale pharmaceutical services. By virtue of this acquisition, EBOS will be the leading provider of outsourced pharmacy services in the Australian hospital sector.” Mr Davies said.
The agreement to acquire HPS includes certain conditions. The transaction is expected to complete by no later than 30 June 2017.