After a brief hiatus from the healthcare M&A market, CRH Medical Corporation (NYSE: CRHM) added two new Georgia-based physician groups to its network in early June. CRH, based in Vancouver, Canada, provides physicians with innovative services and products for the treatment of gastrointestinal diseases. The company acquired Oconee River Anesthesia Associates and Lake Lanier Anesthesia Associates.
Lake Lanier provides anesthesia services to two ambulatory surgery centers, and the group generates an estimated annual revenue of $2.7 million. The acquisition for Lake Lanier was financed through a combination of CRH’s credit facility and cash on hand and is EBITDA and cash flow accretive. CRH will be acquiring a 75% stake in the practice. Oconee River provides anesthesia services to a single ambulatory surgery center. CRH only acquired a 51% stake in the practice, and instead, formed a joint venture with Oconee River.
The two new anesthesia groups increase CRH’s presence in Georgia to 19 ambulatory surgery centers.
Since 2014, CRH Medical has announced 26 transactions in the Physician Medical Group sector, totaling over $100 million in deal value, according to our Deal Search Online database. Five of those transactions took place in 2019, all for anesthesia practices in the Southeastern and Midwestern United States.
The practices were valued in the low millions, but the largest deal of the bunch was announced in January 2019 for Anesthesia Care Associates, LLC, based in Evansville, Indiana. CRH Medical paid roughly $5.3 million for the practice, which reported an estimated annual revenue of $2.6 million.
Anesthesia Care Associates is a gastroenterology anesthesia practice that provides anesthesia services to one GI ambulatory surgical center. This deal marked CRH Medical’s first acquisition in Indiana. The transaction was financed through a combination of CRH’s credit facility and cash on hand.
For more on Physician Medical Group transactions, check out our 2019 Physician Medical Group Acquisition Report or the recently published 2020 Health Care Services Acquisition Report.
