Pihlajalinna Oyj Stock Exchange release 14 December 2015, 9.55 EET
Pihlajalinna acquires Itä-Suomen Lääkärikeskus
According to the agreement signed this morning Pihlajalinna Oyj's subsidiary company Pihlajalinna Terveys Oy has agreed to acquire from current owners over 90 % of all shares of Itä-Suomen Lääkärikeskus Oy. The net debt-free value of the acquisition target is 6.8 million euros. The transaction price will be paid fully in cash when the acquisition is completed.
Itä-Suomen Lääkärikeskus Oy is currently in a demerging process and the acquisition target is the company where the business operations are moved into. In the demerger the real estate companies and the long term costs such as long term real estate loans, subsidiary stock and investments will be left out of the acquisition. The demerger is expected to come into force on January 1st 2016 and the acquisition is expected to come into force by the end of the first quarter of 2016.The acquired company will continue to rent the current premises. Itä-Suomen Lääkärikeskus Oy's two private clinics in Joensuu and private clinics in Nurmes and Outokumpu are included in the acquisition. The current personnel of Itä-Suomen Lääkärikeskus will continue in the service of Pihlajalinna Group and its branch clinics will become part of Pihlajalinna's Dextra chain.
The acquisition strengthens Pihlajalinna's growth to become the leading social and healthcare company in Finland according to its strategy. Itä-Suomen Lääkärikeskus Oy is the largest and most well-known private healthcare service provider in Joensuu that offers comprehensive general and specialist practitioner services, laboratory and diagnostic services as well as occupational healthcare and private hospital services. The company has 53 healthcare professional and other staff as well as 100 practitioners. In 2014 Itä-Suomen Lääkärikeskus Oy's net sales were 6.5 million euros (total sales apprx. 11.8 million euros) and operating profit 1.0 million euros. Itä-Suomen Lääkärikeskus Oy has two private clinics in Joensuu and private clinics in Nurmes and Outokumpu.
Pihlajalinna CEO Mikko Wirén: I'm very happy that this acquisition is realized. Our objective is to grow to a national player and now through Itä-Suomen Lääkärikeskus Oy we will become a significant operator in many locations in Eastern Finland. Itä-Suomen Lääkärikeskus has operated in Joensuu already 25 years and is known for its high quality and versatile services. This acquisition brings also more growth to Private clinics and Specialist care segment revenue.
Itä-Suomen Lääkärikeskus Oy CEO Urho Väätäinen: The domestic Pihlajalinna Group offers an excellent opportunity to the high quality development of Itä-Suomen Lääkärikeskus' private clinic operations also in the future. I believe that the acquisition will guarantee high class private clinic services to our clients in the locations we operate in.
| P&L summary, Itä-Suomen Lääkärikeskus Oy (FAS) | |||||
| €'000 | FY13A | FY14A | 1-9/2014* | 1-9/2015* | |
| Gross sales | 11 396 | 11 753 | 8 567 | 9 354 | |
| Practitioner's share | (5 132) | (5 210) | (3 720) | (4 207) | |
| Net sales | 6 264 | 6 543 | 4 847 | 5 148 | |
| Other operating income | 133 | 113 | 92 | 39 | |
| Materials and supplies | (1 416) | (1 589) | (1 125) | (1 165) | |
| Personnel expenses | (2 052) | (2 114) | (1 675) | (1 751) | |
| Other operating expenses | (1 331) | (1 498) | (1 132) | (1 218) | |
| EBITDA | 1 598 | 1 456 | 1 006 | 1 053 | |
| Depreciation and amortization | (275) | (466) | not available | not available | |
| EBIT | 1 323 | 991 | not available | not available | |
| Financial income | 181 | 111 | |||
| Financial expenses | (17) | (48) | |||
| Taxes | (366) | (212) | |||
| Profit for the year | 1 121 | 841 | |||
| * 1-9/2015 P&L and BS are not comparable due to the inadequate closing accruals | |||||
| Balance sheet summary | ||||
| €'000 | 31.12.2013 | 31.12.2014 | 30.9.2015* | |
| Intangible assets | 1 680 | 1 595 | 1 727 | |
| Tangible assets | 374 | 329 | 369 | |
| Investments | 3 792 | 5 049 | 5 530 | |
| Non-current assets | 5 846 | 6 972 | 7 626 | |
| Loan receivables | 54 | 54 | 49 | |
| Inventories | 343 | 328 | 328 | |
| Short-term receivables | 799 | 855 | 592 | |
| Short-term investments | 405 | 191 | 170 | |
| Cash and cash equivalents | 133 | 115 | 48 | |
| Total assets | 7 579 | 8 515 | 8 813 | |
| Equity | 6 775 | 7 104 | 7 514 | |
| Long-term loans | 27 | 609 | 502 | |
| Short-term loans | 777 | 802 | 797 | |
| Total equity and liabilities | 7 579 | 8 515 | 8 813 | |
| * 1-9/2015 P&L and BS are not comparable due to the inadequate closing accruals | ||||
Further information:
Mikko Wirén, CEO, Pihlajalinna Oyj, +358 50 322 0927
Urho Väätäinen, CEO, Itä-Suomen Lääkärikeskus Oy, +358 400 276 438
Terhi Kivinen, SVP, Communications, Marketing and IR, Pihlajalinna Oyj, +358 40 848 4001, terhi.kivinen@pihlajalinna.fi
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investors.pihlajalinna-konserni.fi
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