Private equity firm Next Capital is seeking a slice of Australia’s $6 billion-plus a year allied health care sector, taking a stake in ambitious new roll-up InterHealthcare.
Street Talk can reveal Next Capital has committed $100 million to help fund InterHealthcare’s acquisition-led growth strategy, and will own 50.1 per cent of the business. InterHealthcare management will retain the other 49.9 per cent.
InterHealthcare’s ambitious plan starts with the acquisition of 35 multi-disciplinary allied health practices, which will join its network this month. The incoming practices together turned over more than $30 million in the past 12 months and are based around the country.
The next step is finding new targets, with InterHealthcare aiming to be Australia’s leading multi-disciplinary allied health service provider by mid-2020.
It has Next Capital’s $100 million warchest and is actively looking for deals, with expectations of 70 clinics by the end of March.
“It’s holistic allied health and a typical Next Capital deal; a well-run business, excellent growth profile and backed by industry-leading people,” Next Capital founding partner John White told Street Talk on Sunday.
White and fellow Next Capital partner James Murphy will join InterHealthcare’s board as part of the agreement…see full article.
