Healthcare Locums In Talks to Buy Healthcare Australia

UK-based medical staffing company Healthcare Locums is in talks to buy Healthcare Australia, which provides nursing and homecare services, Reuters reported, citing an earlier report by the Australian Financial Review. Healthcare Australia is majority owned by CHAMP Private Equity.

(Reuters) – Healthcare Locums Plc is on an acquisition spree as it confirmed on Wednesday it was in talks with nursing services provider Healthcare Australia Holdings, sending the UK medical staffing company’s shares up 8 percent.

Earlier in the day, the Australian Financial Review reported CHAMP Private Equity was selling Healthcare Australia to London-based Healthcare Locums.

Healthcare Australia, which provides nursing, health and homecare services, is majority owned by funds advised by CHAMP Private Equity.

In July, Healthcare Locums agreed to buy two nursing agencies in the UK and another in Australia for at least 16 million pounds to expand in the specialist nursing recruitment market. [ID:nSGE66F0BG]

On Sept. 27, Healthcare Locums had said it would continue to look for strategic acquisitions, which could add to its future earnings.

The company, valued at 117 million pounds ($184.5 million) at Tuesday close, expects to fund any potential acquisitions through debt. It had a net debt of 14.5 million pounds as at June 30.

Healthcare Locums shares, which have fallen 31 percent since the company reported a fall in first-half profit, were up 8 percent at 111.5 pence at 0846 GMT on the London Stock Exchange. (Reporting by Tresa Sherin Morera in Bangalore; Editing by Maju Samuel)