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Centric Health Agrees to Divest Physiotherapy, Rehabilitation and Assessments Operations for Gross Proceeds of up to CAD$250 Million in Cash
Centric Health Agrees to Divest Physiotherapy, Rehabilitation and Assessments Operations f...
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[{"type":"text","content":"\n\n\n\nCentric Health Agrees to Divest Physiotherapy, Rehabilitation and Assessments Operations for Gross Proceeds of up to CAD$250 Million in Cash\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n.prntac{\nTEXT-ALIGN: CENTER\n}\n\n\n\n\n\n\nCentric Health Agrees to Divest Physiotherapy, Rehabilitation and Assessments Operations for Gross Proceeds of up to CAD$250 Million in Cash\nCanada NewsWire\nTORONTO, Nov. 25, 2015\n\n\n\n– Company to Use Substantial Portion of Net Proceeds to Pay Down Debt, Significantly Reducing Leverage and Strengthening its Balance Sheet –\n\n– Company to Focus on High-Growth Opportunities Across National Platform in Specialty Pharmacy and Surgical and Medical Centres –\n\n\n\nTORONTO, Nov. 25, 2015 /CNW/ - Centric Health Corporation (\"Centric Health\" or \"the Company\") (TSX: CHH) today announced it has entered into a definitive agreement to sell substantially all of the businesses within its Physiotherapy, Rehabilitation and Medical Assessments segment to Audax Private Equity (\"Audax\"), an Audax Group business, for a cash purchase price at closing of CAD$245 million, subject to certain closing adjustments, plus up to CAD$5 million in contingent consideration based on the divested businesses achieving certain performance thresholds in 2016 and/or other criteria being met during the first half of 2017. The Company intends to use a substantial portion of the net proceeds from the sale, which are expected to be between CAD$230 million and CAD$235 million (excluding the up to CAD$5 million contingent consideration), to pay down debt and significantly reduce the Company's leverage.\n\n\"The divestiture of these businesses at an attractive valuation will enable us to transform our business by paying down debt, reducing our leverage and providing the financial flexibility to invest in the significant growth opportunities in the ongoing business,\" said David Cutler, President and Chief Executive Officer. \"With a significantly strengthened balance sheet and free cash flow, we are well positioned to create meaningful and s...