CRH Medical Corporation Announces Majority Acquisition of Lake Washington Anesthesia, PLLC

CRH Medical (TSX:CRH; NYSE:CRHM) has announced it has completed an accretive transaction where it has acquired a 51 percent interest in a gastroenterology anesthesia practice in the state of Washington.

As quoted in the press release:

Lake Washington is CRH’s first Monitored Anesthesia Care (“MAC”) program to be completed. The MAC program was announced on March 15, 2017 with Puget Sound Gastroenterology (“PSG”). CRH developed PSG’s MAC program and retained an option to acquire a 51% interest in the new anesthesia practice, Lake Washington.

Lake Washington provides anesthesia services to four GI ambulatory surgical centers and is CRH’s first acquisition in the state of Washington. The transaction was financed through a combination of CRH’s credit facility and cash on hand.

Lake Washington Transaction Highlights:

• Estimated annual revenue of US$5.2M
• EBITDA and cash flow accretive

Edward Wright, CEO of CRH, commented on the transaction, “Last year, we signed an agreement with Puget Sound Gastroenterology to develop a MAC program to adopt deep sedation as the standard of care at their practice. Today, we are pleased to exercise our option to acquire a majority ownership in the anesthesia practice and expand our footprint to the state of Washington. We look forward to further leveraging the strength of our GI relationships to grow our business through our MAC programs and anesthesia acquisitions.”

Click here to read the full press release.