Ramsay Health Care Limited (ASX:RHC) will acquire the assets and operations of National Capital Private Hospital from the receivers and managers of Healthscope Group for $251 million.
The agreement covers a single hospital and follows the rejection last week of a revised proposal by Northwest Healthcare and Calvary Health to acquire 12 Healthscope hospitals.
National Capital Private Hospital is located in Garran, Canberra, and is co-located with the public Canberra Hospital. Ramsay said the facility includes 8 theatres, 1 cath lab, 148 beds, an intensive care unit and a coronary care unit, which it said supports a higher-acuity patient mix.
The hospital operates on a site leased from Canberra Health Services under terms extending to 2064.
Ramsay said it will fund the transaction through its existing debt facilities.
Chief executive Natalie Davis said the hospital is “strategically located” in an attractive catchment area and aligns with Ramsay’s target therapeutic areas, including cardiac, orthopaedics and oncology.
Ramsay expects National Capital to rank within its top 20 hospitals by both revenue and profitability and said the acquisition is expected to be earnings per share accretive in the first 12 months of ownership.
The deal remains subject to approval from the Australian Competition & Consumer Commission and is expected to complete next year.
Ramsay shares were last trading at $34.51.