Rothwell acquisition edges Healthia to becoming largest physiotherapy operator in Australia

Already Australia’s largest and fastest growing allied health portfolio, healthcare operator Healthia (ASX: HLA) has further strengthened its position in the physiotherapy market with the acquisition of Rothwell Physiotherapy in Brisbane. 

The addition continues a string of acquisitions which included four clinics last month as part of Healthia’s commitment to deploy $20 million towards acquisitions of businesses that can be grown further via integrated into the Healthia network. 

Since listing on the ASX in 2018 with 104 allied health businesses, the Company has increased that to 217 already with Rothwell to be number 218 upon settlement which is expected in November. This portfolio growth has been the driving force behind Helthia’s ascension up the healthcare ranks where incoming clinics are provided with Healthia’s marketing, supply chain and support services to further grow their businesses.

“The addition of Rothwell Physiotherapy is in line with Healthia’s stated growth strategy, and brings us one step closer to being the number one provider of physiotherapy services in Australia,” said Healthia Managing Director, Wesley Coote. 

“We have a strong acquisition pipeline in place for this financial year, underpinned by industry participants placing greater value on the support and stability that a larger group such as Healthia, can provide.”

For the year ended 30 June 2021, Healthia reported a 52% increase in revenue to $140.4 million and a 91% increase in net profit after tax to $8.9 million. 

While some of this was acquired growth, the allied health operator achieved 9.1% organic growth across their network where Healthia’s exposure across podiatry, physiotherapy and optometry services create organic growth opportunities for incoming clinics. These include floorspace optimisation, introduction of new allied health services, shared support services and supply chain discounts. 

On top of that, cross-referral opportunities can be unlocked between nearby clinics that can keep Healthia’s patients within their ecosystem of allied health services. 

Total upfront consideration for Rothwell Physiotherapy is $1.62m comprising $1.30m cash and $0.32m in Clinic Class Shares issued. The business is expected to contribute annualised revenue of $2.13m and EBITDA of $0.36m to Healthia which equates to a 4.5x EBITDA acquisition multiple in line with Healthia’s historic average. 

Rothwell Physiotherapy provides Physiotherapy and Exercise Physiology to adults and children, Hydrotherapy, home visits and exercise classes.

Having grown its allied health portfolio 109% in just three years while continuing to deliver rising shareholder returns, a recent survey of Healthia employees by independent consultants, BPA Analytics, catagorised Healthia as a ‘Culture of Success’. 

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