WELL Health Technologies Corp. (TSX.V: WELL) had an incredibly busy year in 2020, announcing eight deals, according to search results in our Healthcare Deals Database. Most of its activity focused on smaller eHealth targets to build up its digital health platform, but now WELL Health is turning its attention to the physician market. On Monday, the company announced the acquisition of CRH Medical Corporation (NYSE: CRHM), which provides physicians with innovative services and products for the treatment of gastrointestinal diseases. CRH serves 69 ambulatory surgical centers in 13 states.
The purchase price came out to be $292.7 million, or $4.00 per share for CRH, a premium of approximately 83% to the closing price of the company’s shares on February 5, 2021. Including debt, the deal is valued at a total of $369.2 million. CRH generated annualized EBITDA and revenues of approximately $44.5 million and $121.3 million, respectively, in 2020. The acquisition is expected to be completed during Q2 2021.
Over the years, CRH Medical has been an active player in the healthcare M&A market, announcing 31 deals, most of them targeting small (1-2 physicians) practices specializing in gastroenterology anesthesia services for ambulatory surgery centers. In 2020, the company announced seven deals, focused on building its presence in the southeastern United States; it added three practices in Florida, two in Georgia and one each in Virginia and North Carolina. In December, the company’s most recent deal, CRH bought a 51% stake in FDHS Anesthesia, LLC in Sarasota, Florida. The practice services two ambulatory surgery centers located in Florida and has estimated annual revenues of $3 million.
With the addition of CRH Medical, WELL Health will dramatically increase its presence in the United States and provide the company additional inorganic and organic growth opportunities. WELL Health will implement its digital health products in CRH Medical’s network of physician practices.