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View All NewsUK — Healthcare Locums to acquire Orion, LML and Redwood Health
16 July 2010
Healthcare Locums Plc (HLO:LSE), the specialist health and social care staffing firm, has announced that it has entered into conditional agreements to acquire the entire issued share capital of Orion, the business and assets of LML and, subject to shareholder approval, the business and assets of Redwood Health Limited.
Healthcare Locums (HCL) has for sometime recognised that the specialist nursing market is a further environment in which it can operate from its existing call centre operations without the need for a branch network.
In March 2009 the company commenced the application process for a nursing licence, to enable HCL to place nurses on a temporary basis with its NHS client base and to enable the company to tender for contracts on the National Nursing Framework. HCL has recently been granted its nursing licence and two of the company's existing brands have been awarded a place on the National Nursing Framework and three of HCL's brands have been awarded a place on the new London based nursing framework.
As a result of both the granting of the licence to operate in the nursing agency market and securing places on the framework agreements, the company has recently been awarded preferred supplier status for the South Central nursing framework which has a potential annual revenue of approximately 30 million Pounds.
The company also announces that it has completed a placing of 7,333,334 new Ordinary Shares at a placing price of 150 Pence per share to raise funds of 11 million Pounds before expenses, subject to Admission.
Commenting on the Acquisitions, Alan Walker, Non-executive Chairman of HCL, said "these acquisitions represent a significant step towards implementing our recently stated strategy of expanding into the specialist nursing recruitment market. Redwood Health and Orion have built up significant databases of specialised nurses which will provide a platform to capitalise on both the UK and international recruitment opportunities."
"There is an increasing trend for consortia of NHS Trusts to opt out of the National Framework and to develop their own local framework agreements for the purpose of staff recruitment. The company welcomes this trend as it facilitates the provision of a more tailored and efficient service to its clients. HCL already provides a wide range of specialist healthcare workers to its clients and the ability to offer specialist nurses will further enhance the company's offering."
"It is intended that the LML business will be integrated into the company's existing Sydney office and that the increased presence in Australia will contribute to the continued growth of the company's international placement division."
"'We welcome the government's recent statement on changes to the NHS devolved management and its continued commitment to prioritising front line services."
In early trading Healthcare Locums' shares were up by +1.56% to 163 Pence.