CRH Medical (TSX:CRH) soared on Monday on news that
Well Health (TSX:WELL) would be acquiring its business for US$292.7 million. The deal is still subject to shareholder approval, but it is expected to close in the second quarter of this year.
The move is just the latest effort by Well Health to penetrate the U.S. market. In November 2020, it announced that it had completed its purchase of a majority (58%) stake in Circle Medical Technologies. But at a price tag of US$14.3 million, it was a much smaller deal than the acquisition of CRH. And at a run rate of just US$5.7 million in revenue, Circle Medical’s top line is just a fraction of the US$100 million that CRH has generated over the past four quarters. In the nine-month period ending Sept. 30, 2020, Well Health itself only reported $33.1 million in sales.
The Daily Chase: Stocks rise on Yellen comments; Tesla invests in Bitcoin
North American equity markets appear poised to rise at the start of trading, extending the momentum that carried the S&P/TSX Composite Index, S&P 500 and the Nasdaq to closing records on Friday. Over the weekend, U.S. Treasury Secretary Janet Yellen touted the potential payoff from the Biden administrationâs US$1.9-trillion spending package, saying it could help the U.S. reach full employment next year. Weâll stress test that assertion and gather reaction from market professionals today.
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Well Health announces US$293-million acquisition of Vancouver health firm theglobeandmail.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from theglobeandmail.com Daily Mail and Mail on Sunday newspapers.