Top podiatry operator Healthia, makes big push in Victoria with 12 clinic acquisition

Allied health services group Healthia (ASX: HLA) has continued its expansion as Australia’s largest operator podiatry clinics, today announcing the acquisition of 12 clinics in Victoria to significantly expand its healthcare offerings in the State. 

Secured for a total consideration of $5 million, the 12 new clinics are forecast to deliver Healthia with $4.4m revenue and $1.1m EBITDA annually. This will be added to the company’s strong H1 results where Healthia reported $44.2m revenue and $5.7m EBITDA which represented year-on-year growth of +50.2% and +33.7% respectively. 

“The completion of this acquisition strengthens the Company’s position as the largest podiatry clinic operator in Australia,” said Healthia CEO and Managing Director, Wesley Coote. 

“We are very excited to be attracting clinics of this scale and stature to the network and we look forward to continuing our acquisitive growth trajectory into the future.”

The acquisitions bring Healthia’s national network of clinics to 93 podiatry, 43 physiotherapy and 10 hand therapy. Newly acquired clinics will also gain the benefit of Healthia’s ancillary businesses DBS Medical Supplies and iOrthotics – Australia’s largest manufacturer of 3D-printed orthotics.

Funded by free cash flow and deferred vendor terms, the acquisition of new Victorian clinics will see Healthia meet their target of deploying $15m annually for clinic acquisitions targeting EBITDA multiple of around 4x. 

For FY20, Healthia will have deployed $18m, of which only $12.6m is cash and $3.4m in unlisted Clinic Class Shares, to secure $4.2m EBITDA annually. 

Core to the strong financial returns have been Healthia’s shared resources where clinics have been able to capitalise on floor space by integrating podiatry services into physio clinics and vice-versa. Within the podiatry network of 93 clinics, clinicians also gain access to iOrthotics which can produce orthotics at much greater scale via 3D printing and lower cost than traditional hand-crafted means.

Highlighting the industry’s shift towards 3D printed products, Healthia launched a new iOrthotics manufacturing facility in January capable of printing 30,000 pairs annually and gaining exposure to the valuable North American healthcare market.  

As per Government directives, Healthia’s network of allied healthcare clinics have remained open through COVID-19, providing essential community services which have assisted in alleviating pressure from the public health system through the coronavirus pandemic.

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