EBOS (ASX:EBO) raises $642m to acquire LifeHealthcare for $1.7bn

NZ medical wholesaler EBOS (ASX:EBO) has completed its $642 million (NZ$674 million) placement to partly fund the $1.7 billion acquisition of medical device distributor LifeHealthcare.

Under the placement, around 19.5 million new shares were issued, at $32.76 (NZ$34.50) per share. EBOS said the placement was strongly supported by a broad range of existing and new investors across New Zealand, Australia and offshore.

Under the deal, EBOS will acquire 100 per cent of LifeHealthcare’s Australian & New Zealand subsidiaries and 51 per cent of LifeHealthcare’s Asian subsidiary, Transmedic, with the remaining 49 per cent retained by the Transmedic co-founders. 

“The acquisition of LifeHealthcare accelerates EBOS’ medical devices strategy and creates a platform for EBOS to capitalise on additional future growth opportunities. We look forward to completion and the integration of LifeHealthcare into our existing institutional healthcare division,” said EBOS CEO John Cullity.

To pay for the business, EBOS will also undertake a retail offer of $100 million and take out a $540 million loan.

Shares in EBOS (ASX:EBO) are trading 3.7 per cent higher at $35.99.