8th Dec 2006 07:00
Company Health Group PLC08 December 2006 Embargoed: for release at 0700h, 8 December 2006 Company Health Group PLC ("Company Health" or "the Company") ACQUISITION AGREEMENT Company Health (AIM: CHT), a provider of occupational health services tocorporates and medical evidence collecting services to life assurance providers,is pleased to announce that the Company has signed an agreement to acquire anoccupational health company. The company to be acquired is a provider ofoccupational health personnel and services, which complements Company Health'sown occupational health division. This business has a projected turnover for2007 of £3,750,000 and profit after tax of £350,000. The initial consideration will be £650,000 in cash with a further amount to beagreed in the twelve months post the acquisition following certain agreedtargets being met. The remaining consideration will be principally in shares sothat the aggregate consideration results in half in cash/loan notes and half inshares. Completion is expected to take place by the end of January 2007 and afurther announcement will be made at that time. Commenting on the news, Ralph Gough, Chairman of Company Health said: "Thisacquisition represents a milestone for Company Health Group. Not only will theacquired business enhance our occupational health practice, but it will also adda new revenue stream, providing an occupational health personnel service whichcan supply our own business as well as further afield. The business has asubstantial customer base, which combined with our existing clients will addsignificantly to our revenue next year. In addition to this we anticipate thisacquisition to fit in well with the new regional sales approach we haveadopted." He added: "The Company strategy has always been to make acquisitions in theoccupational healthcare market, which continues to be open for consolidation. Itis pleasing to be able to announce this key acquisition for us which we foreseecontributing considerably to the Company in the future." - ends - For further information please contact: Ralph Gough, Chairman Simon Hudson / Clemmie CarrCompany Health Group Tavistock CommunicationsTel: 020 7553 8820 Tel: 020 7920 3150 Notes to Editors: Company Health Group is a national provider of quality, high value healthservices designed to benefit both employers and employees by adding value,reducing risks, promoting healthy working practices and taking a positive andproactive approach to managing health risks and issues in the workplace. TheCompany's shares are traded on the Alternative Investment Market of the LondonStock Exchange. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
CHT.L