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
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