WELL Health Technologies Corp (WELL) announced that it has recently completed a transaction to acquire an 85% stake in New England Anesthesia Associates (NEAA), effective May 1, 2021. NEAA provides anesthesia services to an outpatient surgery center in Guilford, Connecticut, and other staffing services that serve the surrounding area.
WELL Health Chairman and CEO Hamed Shahbazi said, “We are very excited to complete the first acquisition by CRH after joining WELL just a couple of weeks ago. This acquisition is yet another validation of CRH’s disciplined acquisition and partnership program, and it demonstrates WELL’s commitment to continuing CRH’s very successful and accretive capital allocation program, which aligns perfectly with WELL’s own growth strategy.”
CRH Medical’s CEO Dr. Tushar Ramani added, “We are delighted to have completed this acquisition, which represents our initial expansion into Connecticut. This is our fourth transaction of 2021, and we now serve 73 ambulatory surgery centers across 16 states.”
CRH paid approximately less than five times its trailing operating EBITDA to complete the transaction. The company expects the NEAA’s acquisition to be immediately accretive to its cash flows. (See WELL Health Technologies Corp stock analysis on TipRanks)
Two weeks ago, Echelon Wealth Partners analyst Rob Goff reiterated a Buy rating on the stock with a C$12.00 price target (65.5% upside potential).
Overall, WELL Health stock scores a Strong Buy consensus rating based on 7 Buys. The average analyst price target of C$11.00 implies an upside potential of about 51.7% to current levels. Shares have more than doubled in value over the last year.
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