Adamantem to buy Australia's Zenitas Healthcare

The Zenitas board has recommended shareholders vote in favor of a scheme of implementation that would see Adamantem and Liverpool acquire the business for A$1.46 per share in cash, according to a filing. This represents a 34.6% premium to the August 27 closing price. The company's stock jumped 22.5% on August 31 to end the day at A$1.42.

Adamantem was established by former Pacific Equity Partners executives Anthony Kerwick and Rob Koczkar in 2016 and closed its debut fund in March at A$608 million. This would be the firm's second healthcare sector deal, following the NZ$115 million ($80 million) acquisition of New Zealand-based Heritage Lifecare, which provides aged-care services and runs retirement villages.

Zenitas specializes in in-home and in-clinic care solutions, leveraging the shift away from hospitals to community-based providers. It operates over 55 clinics and other facilities nationwide that employ 1,600 healthcare practitioners. The company's brands include Modern Medical, Lifecare, Ontrac, Nexxt Care, Dimple, Backfocus, CitySKin, Beleura Health Solutions, and Peninsula Sports Medicine Group.

For the 12 months ended June 2018, Zenitas recorded revenue of A$76.6 million, up from A$22.4 million the previous year. Net income rose from A$165.6 million to A$7.32 million. The company has been on a buying spree, announcing the acquisition of five brands in 2018 alone. These deals added A$6 million to underlying EBITDA for the year, which came to A$13.9 million.

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• Topics
• Australasia
• Buyouts
• Healthcare
• Australia
• Adamantem Capital