VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug 18, 2015) - CRH Medical Corporation (CRH.TO)(CRMMF) ("CRH" or the "Company"), a North American medical company that provides physicians with innovative products and services for the treatment of gastrointestinal diseases, today announced the completion of a strategic transaction whereby CRH has acquired the GI anesthesia business of Associates of Digestive Health, LLC ("ADH"). ADH is a growing gastroenterology practice located in Cape Coral, Florida that performs approximately 10,000 endoscopic procedures annually and is expected to generate annual revenues for CRH of approximately US$3,000,000. The transaction consideration was funded using cash on hand.
Highlights of the transaction:
Adds approximately 10,000 new annual procedures
18% increase in annual procedure volume (to more than 66,000 annual procedures)
CRH annual revenue from ADH estimated at US$3,000,000
Immediately accretive to CRH
Leverages existing anesthesia infrastructure with a long-standing CRH O'Regan System customer
Edward Wright, CEO of CRH, stated, "This transaction is further confirmation of our anesthesia acquisition strategy to leverage existing relationships with gastroenterology practices utilizing the CRH O'Regan System. Associates of Digestive Health has utilized the CRH O'Regan System for more than three years and during this time we have established a strong partnership with this practice. We believe that the terms of this transaction ensure a long-term, mutually beneficial relationship for CRH, our shareholders, ADH and their patients. Going forward, we will continue to pursue additional acquisition opportunities to grow CRH's business."
About CRH Medical Corporation:
CRH Medical Corporation is a North American company that provides physicians with innovative products and services for the treatment of gastrointestinal diseases. The Company's product distribution strategy focuses on physician education, patient outcomes, and patient awareness. The Company's first product, the CRH O'Regan System, is a single use, disposable, hemorrhoid banding technology that is safe and highly effective in treating hemorrhoid grades I - IV. CRH distributes the CRH O'Regan System, treatment protocols, operational and marketing expertise as a complete, turnkey package directly to physicians, allowing CRH to create meaningful relationships with the physicians it serves. CRH also operates a full service anesthesia services division serving the gastroenterology community, which provides anesthesia services for patients undergoing endoscopies and colonoscopies. Performing these procedures under anesthesia makes these procedures more comfortable for patients and allows gastroenterologists to perform more procedures than in the absence of anesthesia. CRH expects to leverage the capabilities it acquired through these gastroenterology anesthesia companies to consolidate the highly fragmented gastroenterology anesthesia provider business. The Company's goal is to establish CRH as the premier provider of innovative products and essential services to gastroenterologists throughout the United States.
Information included or incorporated by reference in this press release may contain forward-looking statements. This information may involve known and unknown risks, uncertainties, and other factors which may cause our actual results, performance, or achievements to be materially different from the future results, performance, or achievements expressed or implied by any forward-looking statements. Forward-looking statements, which involve assumptions and describe our future plans, strategies, and expectations, are generally identifiable by use of the words "may," "will," "should," "expect," "anticipate," "estimate," "believe," "plan," "intend" or "project" or the negative of these words or other variations on these words or comparable terminology. Readers are cautioned regarding statements discussing profitability; anticipated benefits; growth strategies; anticipated trends in our industry; our future financing plans; and our anticipated needs for working capital. Forward looking statements in this press release include statements regarding the anticipated benefits of the ADH acquisition, successful completion of additional acquisitions, increasing revenue and operating EBITDA, continued growth of our business and our ability to leveraging our existing operations and capabilities. Actual events or results may differ materially from those discussed in forward-looking statements. There can be no assurance that the forward-looking statements currently contained in this press release will in fact occur. The Company bases its forward-looking statements on information currently available to it, and assumes no obligation to update them. The Company disclaims any intent or obligations to update or revise publicly any forward-looking statements whether as a result of new information, estimates or options, future events or results or otherwise, unless required to do so by law.