- Premier Health (PHA) signs a binding agreement to acquire Umana Holdings Inc. and its subsidiary Canadian Health Care Agency for between $10.5M and $14.5M
- CHCA will become a wholly-owned subsidiary of the Premier Health
- The corporation will continue the business of CHCA which consists in providing specialized nursing service
- CHCA currently has over 200 active and specially trained Registered Nurses and Nurse Practitioners in its organization
- Premier Health of America Inc. (PHA) is up a high 23.08 per cent, trading at C$0.80 at 11:58 am ET
Premier Health of America (PHA) has signed an agreement to acquire Umana Holdings and its wholly-owned subsidiary Canadian Health Care Agency.
Total consideration for the transaction is between C$10.5M to C$14.5M, depending on the achievement of certain performance objectives, minus indebtedness.
As a result of the transaction and a corporate reorganization, CHCA will become a wholly-owned subsidiary of Premier Health. The corporation will continue the business of CHCA, which consists in providing specialized nursing services.
“The acquisition of CHCA starts our expansion outside of the province of Quebec and consolidates our market position in Canada’s northern regions,” said Martin Legault, CEO of Premier Health.
“In addition, the Cambridge-based agency provides us with a good management infrastructure in Ontario that will serve as a base to continue our expansion in this province. This is a strategy we are expecting to follow in other provinces,” added Legault.
CHCA is the primary provider to Indigenous Services Canada for nursing services to remote and semi-remote Indigenous communities in Ontario and Alberta.
In addition, CHCA provides nurse services as a backup provider to ISC for these communities in Manitoba.
CHCA is based in Cambridge, Ontario, and was founded in 2001 in response to severe staffing shortages in Canada’s northern regions.
CHCA started its operations in Northern Ontario and quickly expanded its activities to provide Nunavut and Northern Manitoba services. CHCA currently has over 200 active and specially trained Registered Nurses and Nurse Practitioners in its organization.
For the fiscal year ending January 31, 2022, CHCA generated revenues of C$34.5M, an EBITDA of C$6.4M and a net income of C$4.6M.
“Our objective is to continue building on our foundation of offering superior care and services to our communities,” said Sharon Umana, CEO of CHCA.
“Teaming up with Premier Health is a natural fit for us that will allow us to capitalize on the strengths of our nurses and nurse practitioners into even more opportunities to provide care,” concluded Umana.
CanCo has entered into the SPA with the shareholders of Umana to acquire all of the issued and outstanding shares of CHCA on a cash-free and debt-free basis for a total cash consideration of up to C$14.5M million, comprised of a C$10.5M cash payment less indebtedness at the closing of the transaction.
Premier Health is a leading Canadian Healthtech company that provides a comprehensive range of outsourced services solutions for healthcare needs to governments, corporations, and individuals.
Premier Health of America Inc. (PHA) is up a high 23.08 per cent, trading at C$0.80 at 11:58 am ET.