Healthcare Locums (HCL) is to acquire the healthcare companies Redwood Health, Orion and LML for up to £16.05 million.
Healthcare Locums (HCL) is to acquire the healthcare companies Redwood Health, Orion and LML for up to £16.05 million.
The acquisition of Redwood Health is for an initial consideration of £5 million, plus an additional performance related payment of up to £1.65 million, and is subject to shareholder approval.
Redwood is a London-based nursing locum agency, supplying the National Health Service and the private healthcare sector. In the year to April 2010, Redwood had sales of £16.6 million.
The acquisitions of Orion and LML will cost AIM-quoted HCL £3.7 million and £5.7 million respectively, which the company has funded by placing around 7.3 million new ordinary shares to raise £11 million before costs.
Essex-based Orion is a nursing and healthcare staffing business, with clients across the UK and abroad. LML is an Australian medical staffing company with a database of over 3,500 qualified doctors. HCL intends to integrate LML into its existing Sydney office.
London-based HCL is a healthcare staffing agency, formed in 2003. In 2009 the company reported sales of £172.1 million.
Alan Walker, non-executive chairman of HCL, comments: ‘These acquisitions represent a significant step towards implementing our recently stated strategy of expanding into the specialist nursing recruitment market. Redwood Health and Orion have built up significant databases of specialised nurses which will provide a platform to capitalise on both the UK and international recruitment opportunities.’
