EBOS to buy LifeHealthcare for A$1.17b in debt and share deal

EBOS will raise funds to buy LifeHealthcare fo A$1.17 billion. Photo / Supplied

EBOS Group said it had entered into a deal to buy medical device distributor LifeHealthcare from funds advised by private equity firm Pacific Equity Partners and other minority holders.

The purchase comprises 100 per cent of LifeHealthcare's Australian and New Zealand subsidiaries and 51 per cent of LifeHealthcare's Asian subsidiary, Transmedic, for about A$1.17 billion ($1.23 billion).

EBOS said the acquisition will be fully funded through a combination of the proceeds of a non-underwritten retail offer to eligible existing shareholders to raise up to A$100 million, about A$642m from a share placement, a new A$540 million term loan debt facility and 0.7m in new EBOS shares issued to LifeHealthcare management - worth about $23m.

LifeHealthcare is one of the largest independent distributors of third party medical devices, consumables, capital equipment and in house manufactured allograft material in Australia, New Zealand and South East Asia, EBOS said.

Dual-listed EBOS is Australasia's largest marketer, wholesaler and distributor of healthcare, medical and pharmaceutical products, with annual revenue in excess of A$9b..

In a trading update for the four months to October 31, EBOS said its unaudited revenue and net profit grew at over 10 per cent and 14 per cent respectively, compared with the prior corresponding period.

The company said its latest deal would substantially accelerate its medical devices strategy and would create scale.

LifeHealthcare represents leading implants and specialised consumables, with strong positions across multiple therapeutic areas.

The company's two divisions comprise ANZ Distribution & Allograft and Asia Distribution.

Shares in EBOS closed on Wednesday at $36.50 on the NZX, having gained 44.8 per cent over the last 12 months.

The NZX's regulatory arm, NZ RegCo, said EBOS had been placed a trading halt today
while it undertook the share placement.