Deal closed: August 2019
Oasis M&A mandate: Sell-side
Sectors: Health, Medical and Emergency
Sub-sectors: Workplace Health and Safety
Background & motivation
Ethos Health is an allied health service provider specialising in workplace health and safety. It develops and delivers clinical and consulting services to individuals and organisations across Australia and New Zealand via its primary and satellite clinics. The non-executive majority shareholder was keen to exit the business, with the minority shareholders willing to exit upon agreeable terms.
As a small professional services business, Ethos Health’s revenue and earnings were inconsistent. The decline in the mining industry in and around Newcastle, a primary location for the business, had also caused issues over the previous decade. It proved challenging to provide a compelling story so that acquirers could have faith in the business and its earnings going forward.
Oasis M&A approached a number of companies in the healthcare and allied services sectors, including ASX-listed companies. There is a lot of interest in M&A in the healthcare space, and as a result there were a number of interested acquirers.
The company received several offers, but was ultimately acquired by Prima Health Solutions – a healthcare and technology company specialising in the research, development, and large-scale remote delivery of programs for weight-related conditions. In making the acquisition, Prima Health Solutions secured expertise in chronic disease management and workplace health and safety products across Australia and New Zealand, which it could then offer to its existing clients.