Wednesday 11 May 2011
Allied Healthcare International Inc. (AHCI), a leading homecare provider of health and social care in the United Kingdom and Ireland, announced today that its U.K. subsidiary, Allied Healthcare Group Limited, has acquired the entire issued share capital of BiJu Limited.
Operating from Lancaster, BiJu supplies homecare services to clients throughout Lancashire. Established in 1991 by Bill and Julie Evans, BiJu is one of the Social Service Directorate Preferred Providers and has been awarded 3 stars (Graded Excellent) by the care industry’s regulatory body Care Quality Commission. BiJu also holds the Investors in People (IIP) award. BiJu supplies a comprehensive range of care services, including rehabilitation, physical disabilities, sensory impairment and extra care sheltered housing projects.
Allied expects this acquisition to be accretive to its earnings. Allied has acquired BiJu for maximum total consideration of £1.6 million ($2.6 million). Initial consideration of £1.28 million ($2.1 million) was paid on completion of the transaction and was funded through Allied’s cash on hand. Additional consideration of £0.32 million ($0.5 million) could become payable after 12 months depending on the level of gross profit generated in the business during the next 12-month period equating to a pro forma earnings before interest, tax, depreciation and amortization of £0.37 million ($0.61 million).
Sandy Young, Chief Executive Officer of Allied, commented, "The BiJu acquisition is in line with our strategy of expanding Allied’s geographic footprint and enhancing value for our shareholders. The transaction will provide us with an enlarged market position within the County of Lancashire in the North West of England as well as a platform to expand across Lancashire.
"BiJu is a high quality business recognized for a diverse range of high quality care services. The company has also successfully developed and grown its Self Directed Support services, which is now the preferred route for commissioning by the Local Authority. I am delighted to welcome the BiJu employees into the Allied Healthcare Group and to build upon our companies’ strengths," concluded Mr. Young
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