Georgia Healthcare Group PLC (“GHG” or the “Group”), announces that its healthcare service business has signed a Sale and Purchase Agreement to acquire 100% share capital (the “Transaction”) of Khashuri and Qareli community hospitals (together the “Hospitals”) from IC Group member companies (the “Seller”). IC Group is an insurance company operating in Georgia and owns several small-to-medium sized hospitals. The transaction is in line with the healthcare services business strategy to expand its presence across the country, especially in underrepresented regions of Georgia. Following the acquisition of these Hospitals, the number of community hospitals in the Group has increased to 22, with 555 beds in total.
The Hospitals are located in the Khashuri and Qareli regions, which have a combined population of c.100,000 people, and they operate with 65 and 25 beds respectively. Both hospitals are the sole healthcare services providers in their respective regions and are next to the new central highway connecting East and West Georgia. Khashuri hospital is also the referral centre for three other nearby towns.
The healthcare services business will pay GEL 10.0 million cash consideration to the Seller. The Hospitals are valued at GEL 13.7 million, including investment needs of GEL 3.7 million, implying a 5.5x EV/EBITDA multiple.
“I am very pleased to announce the acquisition of these two community hospitals, which expands our healthcare services business coverage in these strategically important locations, where we previously had no presence. The Hospitals have favourable locations to capture the major traffic from the new central highway at the same time as being the sole healthcare service providers in these regions. The Transaction further enables us to refer patients to our referral hospitals, primarily in Kutaisi and Tbilisi, thus providing potential revenue synergies. Finally, the Transaction will also strengthen our outpatient capacity in these two regions, since our community hospitals are well suited for providing full scale ambulatory services,” commented Nikoloz Gamkrelidze, CEO of Georgia Healthcare Group.
GHG announces the acquisition of two strategically located community hospitals;
