HLA - Healthia Limited

Healthia Limited is the holding company of the Group which owns and operates 56 My FootDr podiatry clinics, an iOrthotics orthotics laboratory and holds a 50% interest in an allied health supplies business, D.B.S. Medical.

The Group has entered into Acquisition Agreements to acquire the following further allied health businesses:

1. 14 Allsports Physiotherapy clinics, the Allsports management business and the Allsports intellectual property, including the brand;
2. 16 podiatry Clinics, which following acquisition are expected to be rebranded as My FootDr;
3. 9 physiotherapy clinics, which following acquisition are expected to be rebranded as Allsports Physiotherapy;
4. 7 Extend Rehabilitation branded hand therapy clinics;
5. The remaining 50% of the issued share capital of My FootDr (Cleveland) Pty Ltd, not currently owned by the company, and;
6. A further 25% of D.B.S. Medical.

It is anticipated that HLA will list on the ASX during September 2018.

https://www.healthia.com.au

Physiotherapy should benefit from stronger demand after COVID-19. Healthia, an emerging allied healthcare company, in September acquired the Back In Motion Health Group for $88.4 million. Back in Motion has 64 physiotherapy clinics.

Healthia is rapidly acquiring smaller healthcare service providers and adding to its three divisions: bodies and minds (physiotherapy); feet and ankles (podiatry and orthotics) and eyes and ears (optical and audiology services).

In its 2020-21 earnings result, Healthia said these markets were worth a combined $9.8 billion in annual revenue and that its market share was less than 1.5 per cent.

Healthia shares have risen from a 52-week low of $1.16 to $2.15, valuing the company at $273 million.

I've listed a position in HLA in the Combo portfolio. I was comfortable buying HLA in a dip as I knew this was a company that has decided to grow by buying smaller ones. I thought that there'd be lots of distressed companies (easy pickens) as we come out of the pandemic lockdowns. This growth strategy has been a popular one in the ASX (remember ABC Learning?). The strategy works quite well initially and provides years of investment growth (trading profits) but eventually this strategy breaks down spectacularly. Don't be holding when it does.

peter2 said:

,,,, as I knew this was a company that has decided to grow by buying smaller ones. I thought that there'd be lots of distressed companies (easy pickens) as we come out of the pandemic lockdowns. This growth strategy has been a popular one in the ASX . The strategy works quite well initially and provides years of investment growth ....

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Yep, it is a strategy (raise capital, acquire small practices and develop economies of scale through a larger network) that has worked over in various formats for many a sector consolidation..... but also one that has failed spectacularly. And some, perhaps many, customers don't like the corporate bling and anonymity of the chains.

Healthia CEO Wesley Coote is the former chief financial officer of veterinary group Greencross. HLA has assembled a team with a good record in buying and integrating businesses, and dealing with medical professionals.

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I think you are right with the opportunities that Covid has thrown their way, with distressed 'shops' available.

The old model of sole practitioner looking to sell at three-times book and have a comfortable retirement is being challenged and younger entrants want more flexibility. This would have to be true for dentists, doctors, vets, through to nail clinics and beauty spas.

another one that's heading off to the sunset.
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HEALTHIA ENTERS INTO SCHEME IMPLEMENTATION DEED WITH PACIFIC EQUITY PARTNERS
• Healthia has entered into a Scheme Implementation Deed with Harold BidCo Pty Ltd, anentity owned by funds advised by Pacific Equity Partners, to acquire 100% of the fully diluted share capital in Healthia by way of a scheme of arrangement
• Under the terms of the Scheme, Healthia shareholders will have the option to receive either $1.80 cash per Healthia share, unlisted scrip consideration or a combination of cash and unlisted scrip consideration. The unlisted scrip consideration alternative provides Healthia shareholders with the potential to participate in the future of Healthia, subject to rounding and scale back mechanisms.
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unless you had the conviction to buy when it was clse to ending its downward trajectory, chances are you'd still be underwater.


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NH

Dona Ferentes said:

another one that's heading off to the sunset.
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HEALTHIA ENTERS INTO SCHEME IMPLEMENTATION DEED WITH PACIFIC EQUITY PARTNERS
• Healthia has entered into a Scheme Implementation Deed with Harold BidCo Pty Ltd, anentity owned by funds advised by Pacific Equity Partners, to acquire 100% of the fully diluted share capital in Healthia by way of a scheme of arrangement
• Under the terms of the Scheme, Healthia shareholders will have the option to receive either $1.80 cash per Healthia share, unlisted scrip consideration or a combination of cash and unlisted scrip consideration. The unlisted scrip consideration alternative provides Healthia shareholders with the potential to participate in the future of Healthia, subject to rounding and scale back mechanisms.
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unless you had the conviction to buy when it was clse to ending its downward trajectory, chances are you'd still be underwater.

View attachment 161904
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NH

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well that saves me from researching it as i scour the ASX for defensive investments

i hope you did well in this investment

cheers

On December 12th, 2023, Healthia Limited (HLA) was removed from the ASX's Official List in accordance with Listing Rule 17.11, following implementation of the scheme of arrangement between HLA and its shareholders in connection with the acquisition of all the issued capital in HLA by Harold BidCo Pty Ltd, an entity ultimately owned by funds managed or advised by Pacific Equity Partners (PEP), or its related
entities, which is not already held by PEP or its related parties.