ASX ANNOUNCEMENT
18 February 2002
RAMSAY TO ACQUIRE LAKE MACQUARIE PRIVATE HOSPITAL
Ramsay Health Care Limited today announced that it has entered into an agreement for the purchase of Lake Macquarie Private Hospital from the Medical Benefits Fund of Australia Limited.
Lake Macquarie Private Hospital is located at Gateshead, in New South Wales. It is currently a 76 bed private hospital specialising in cardio-thoracic and vascular surgery and interventional cardiology.
Settlement is expected to take place by mid April. The acquisition will be financed through existing cash resources and current bank facilities.
The acquisition of Lake Macquarie Private Hospital will bring the total number of hospital facilities in the Company’s portfolio to 23.
The acquisition will give the Ramsay Health Care access to the Newcastle/Hunter region of New South Wales and further enhances the Company’s position as a premier operator of private hospitals. Lake Macquarie Private Hospital has an excellent reputation in the quality of service provided and has recorded a strong financial performance historically. The Company expects that the acquisition will be earning per share (EPS) positive to the Ramsay group in the first year.
“The acquisition of Lake Macquarie Private Hospital is in line with our strategy of continuing to add assets which will contribute positively to the company’s performance,” Ramsay Health Care Managing Director Pat Grier said.
“Our selection process is very rigorous to ensure we only make acquisitions which fit specific strategic and financial criteria,” Mr Grier said.
Ramsay Health Care intends to redevelop the hospital to increase its capacity and further enhance its financial returns.
The acquisition of Lake Macquarie Private Hospital is in line with fits Ramsay’s Health Care’s strategy of continuing to add assets, which will contribute positively to the Company’s performance. Ramsay Health Care has been very selective to ensure it only makes acquisitions which in ensuring it does not make acquisitions because they are available but only those, which fit specific strategic and financial critera. The Company intends to redevelop the hospital to increase its capacity and further enhance its financial returns.
Contact:
Pat Grier
Managing Director
Ramsay Health Care Limited
(02) 9433 3444