Businesses aligned to refined strategic focus on hands-on healthcare services and addressing the needs of Canada's growing seniors population
TORONTO, Jan. 15, 2015 /CNW/ - Centric Health Corporation ("Centric Health" or "the Company") (TSX: CHH), announced today that it will reacquire all of the issued and outstanding shares of Community Advantage Rehabilitation, Inc. ("CAR") (previously referred to as the Company's Home Care Operations) and Active Health Services Ltd. ("Active Health") (previously known as the Company's Seniors Wellness Operations), which were sold to Lifespan Health and Wellness Limited ("Lifespan") in May, 2014 for aggregate gross proceeds of $14.5 million.
"These businesses are perfectly aligned to our refined strategic focus on growing our core strengths in hands-on healthcare services delivery and meeting the increasing needs of Canada's growing seniors population," said David Cutler, President and Chief Executive Officer, Centric Health Corporation. "They will again become part of Centric Health's national infrastructure and presence, supported by the experienced management and clinical leadership of our Physiotherapy, Rehabilitation and Assessments segment which operates a clinic network of over 150 locations across Canada."
"With our exit from the retail home medical equipment market in September of 2014, we are pleased to be in a position to reacquire these high-quality businesses, each of which provides new opportunities for growth, both in their own right and synergistically as part of the Centric Health platform," Mr. Cutler continued. "Importantly, as we no longer operate as a vendor under the Assistive Devices Program (ADP), our therapists will have no issue providing assessments under this program in the future."
"Faced with a difficult choice, I believe we acted in the best interests of our valued clients, staff and the future health of these strategically important businesses to resolve the perceived conflict within the timeframe provided and ensure the needs of patients and residents would continue to be met without interruption," Mr. Cutler said. "The continued growth of these businesses over the past year as well as the strong performance of our continuing operations speaks to the strength and resiliency of our core business operations as we navigated a difficult situation."
As of November 30, 2014, trailing 12 month revenue for CAR and Active Health was approximately $23.3 million dollars. In consideration for the full repayment of the amounts owing under the two promissory notes previously issued in favour of Centric Health by Lifespan, in the principal amounts of $2.5 million dollars and $12 million dollars, respectively, Lifespan shall transfer all of the shares of CAR and Active Health to Centric Health (the "Transaction"). Completion of the Transaction is subject to certain third party consents and is expected to be completed on or about January 30, 2015. Upon completion of the Transaction, CAR and Active Health are expected to be wholly-owned direct or indirect subsidiaries of Centric Health.
Centric Health continues to pursue expansion of its business through the reinvestment of a portion of the net proceeds from the sale of its retail and home medical operations and methadone pharmacy operations in September, 2014, including potential accretive acquisition opportunities.
About the Home Care and Seniors Wellness Operations
CAR is engaged in the home care business, including the provision of assisted devices programs and other assessment services, physiotherapy services, occupational therapy and homecare assistance. Active Health is engaged in senior wellness, including providing rehabilitation and disability management services that focus on physiotherapy services to seniors in retirement, assisted-living and long-term care homes.
About Centric Health Corporation
Centric Health is Canada's largest and most comprehensive national provider of healthcare services focused on producing leading patient outcomes and delivering quality, innovation and sustainable value to patients, clients and stakeholders. With more than 2,800 dedicated healthcare professionals, consultants and support staff serving patients and clients through an extensive platform of 500 locations across the country, Centric Health is uniquely positioned to meet growing healthcare needs in key markets. The Company's long-term strategy focuses on organically growing core high-margin business units with strong profitability and targeting select expansion opportunities to further its national reach in the areas of physiotherapy, rehabilitation and assessments, specialty pharmacy services and surgical and medical centres. Centric Health is listed on the TSX under the symbol CHH. For further information, please visit www.centrichealth.ca.
This press release contains statements that may constitute "forward-looking statements" within the meaning of applicable Canadian securities legislation. These forward-looking statements include, among others, statements regarding business strategy, plans and other expectations, beliefs, goals, objectives, information and statements about possible future events. Readers are cautioned not to place undue reliance on such forward-looking statements. Forward-looking statements are based on current expectations, estimates and assumptions that involve a number of risks, which could cause actual results to vary and in some instances to differ materially from those anticipated by Centric Health and described in the forward-looking statements contained in this press release. No assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur or, if any of them do so, what benefits Centric Health will derive there-from.
SOURCE Centric Health Corporation
For further information: Renée Hourigan, Director of Communications, Centric Health, 416-619-9413, [email protected]; Lawrence Chamberlain, Investor Relations, TMX Equicom, 416-815-0700 ext. 257, [email protected]