Abano buys could add $26m to revenue

Abano Healthcare has confirmed the purchase of two businesses that it believes could add $26 million to its revenue.

Abano said it now owned 70 per cent of Bay Audiology, the country's only national audiology service provider, bought for $21 million.

The other 30 per cent will be held by three founding Bay directors.

Abano has also made the first of two transactions to buy all of Orthotic Centre (NZ).

An initial $4.5 million has been paid for 70 per cent of the footwear business and a second transaction will be made in July 2008 on an earn-out and floor-price basis.

Abano managing director Alan Clarke said Bay Audiology had projected revenue of more than $21 million and growth averaging above 10 per cent a year.

Abano sold Eldercare in July and warned that the lack of this revenue would lower its first-half profit.

But the group was confident that by year end, the purchases would help it to exceed the previous year's pre-tax profit.

- NZPA