1. Most Discussed
  2. Gainers & Losers
SYB 0.0¢

A new cash cow

  1. Henrik

    635 posts.
    QML is a substantial business (been in biz. for ~ 80 years) with major market share and an excellent cash flow.
    This purchase could also offset the loss of earnings if Mayne goes ahead with the disposal sale of Mayne Logistics.
    Strategic a smart move for Mayne's Healthcare business.
    =======================================

    Mayne buys Queensland Medical Laboratory for $268m
    09:53, Wednesday, 26 June 2002

    Sydney - Wednesday - June 26: (RWE) - Mayne Group Ltd today announced it would buy Queensland Medical Laboratory Group, Queensland's leading pathology services provider, for $268.25 million.
    The acquisition will be funded from existing cash reserves and committed, but undrawn, facilities.
    Directors expect it to be cash earnings per share accretive immediately, and accretive to accounting earnings within 12 months.
    Mayne managing director Mr Peter Smedley said the acquisition broadened Mayne's pathology network to cover all the eastern seaboard states and would deliver shareholder value.
    "We are very pleased with the acquisition, given current industry trading multiples and recent industry transaction prices.
    "This is particularly so given QML is a very high-quality, market-leading business in the fastest-growing state market for pathology in Australia," Mr Smedley said.
    Mayne forecasts QML fee revenues for the 2002 financial year of more than $160 million with EBITDA of about $27 million.
    It has market share of more than 50 per cent in Queensland, as well as a small presence in northern NSW and the Northern Territory.
    Mayne expects to achieve cost savings of at least $10 million within 12 months from completion of the acquisition, by leveraging its corporate relationships in the area of consumables and leveraging existing pathology corporate infrastructure costs.

DISCLAIMER:
Before making any financial decisions based on what you read, always consult an advisor or expert.

The HotCopper website is operated by Report Card Pty Ltd. Any information posted on the website has been prepared without taking into account your objectives, financial situation or needs and as such, you should before acting on the information or advice, consider the appropriateness of the information or advice in relation to your objectives, financial situation or needs. Please be aware that any information posted on this site should not be considered to be financial product advice.

From time to time comments aimed at manipulating other investors may appear on these forums. Posters may post overly optimistic or pessimistic comments on particular stocks, in an attempt to influence other investors. It is not possible for management to moderate all posts so some misleading and inaccurate posts may still appear on these forums. If you do have serious concerns with a post or posts you should report a Terms of Use Violation (TOU) on the link above. Unless specifically stated persons posting on this site are NOT investment advisors and do NOT hold the necessary licence, or have any formal training, to give investment advice.

Top