Investor Presentaiton slide image

Investor Presentaiton

Key terms: The acquisition has a total expected purchase price of $70m and has normal conditions associated with pathology acquisitions Purchase price Implementation Costs and Synergies Conditions and timing considerations • ACL has entered into a binding agreement to acquire the key business assets of Medlab Pathology for $70m, with $60m paid at completion and deferred consideration of $5m on completion of CY22 and a further $5m subject to the achievement of non-COVID revenue retention hurdles • Price represents 6.7x FY21 normalised EBITDA pre AASB-16 and ex-JobKeeper, or 2.6x normalised EBITDA post AASB-16 Costs to obtain synergies and integrate the businesses will lead to transaction and one-off costs of approximately $10m which will be expensed over 18-24 months Expect synergy benefits of more than $10m which will take 18-24 months to be fully achieved on a run rate basis Synergies to be generated across several areas including: Duplicated systems and laboratories . Efficiencies • Consumable savings • ACL has track record of generating operating leverage through its unified laboratory system • • ACCC has confirmed that it does not intend to conduct a public review of the transaction Acquisition is subject to approval by FIRB and other customary conditions precedent Expected completion in December 2021 Deal funding • The transaction will be funded by cash on balance sheet and existing debt facilities 7
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