HPS is Australia’s largest provider of outsourced pharmacy services to hospitals, correctional facilities, oncology centres and fertility clinics, with more than 100 sites nationally.
Blue Sky managed its investments in HPS for more than two years, doubling its earnings, driven by strong revenue growth from both existing and new customers.
“The investment will generate a return in excess of 25 per cent [aper annum] net of fees for investors in Blue Sky’s HPS funds,” Blue Sky said in a statement.
Consequently, the acquisition of HPS is expected to increase EBOS Group’s underlying EBITDA by at least 5 per cent in FY18 and will be EPS accretive from year one.
The sale is expected to complete by June 30, 2017 and is subject to customary conditions precedent.
HPS’s key management will continue to operate the business under EBOS’ ownership and will form part of EBOS Group’s Institutional Healthcare business division.
With more than 40 years in the provision of services to health facilities, HPS now services over 100 sites and employs over 580 staff including over 200 pharmacists.
EBOS group CEO Patrick Davies said the acquisition of HPS is an important strategic investment as it provides the group with a vertically integrated model in a market segment that has attractive long term growth prospects, including the continued introduction of new drugs.
“The acquisition of HPS continues EBOS’ history of expansion in both the Australian and New Zealand hospital markets where it is the leading provider of wholesale pharmaceutical services. By virtue of this acquisition, EBOS will be the leading provider of outsourced pharmacy services in the Australian hospital sector,” Davies said.
The acquisition will be fully debt financed.