By NZPA
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Wednesday 9th October 2002 |
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The acquisition is a further move by the company away from property and rest homes.
The company said it would strengthen ElderCare's position as "New Zealand's leading listed healthcare and medical services provider".
It said the opportunity in the dental market was identified by ElderCare earlier this year and, with annual revenues poised to break through the $9 million level and more than 110 staff, including 32 dentists, Geddes was seen as a strong strategic acquisition.
Eldercare said Geddes was New Zealand's highest profile dental brand and had steadily increased revenues year-on-year, through the opening of new branches and acquisition of selected practices.
Eldercare chief executive Alan Clarke forecast an ebitda (earnings before interest, tax, depreciation and amortisation) income of 13 percent from Geddes in the first full year. Eldercare annual revenue would rise 17 percent to more than $60 million.
The New Zealand dental market is valued at $320 million a year, with over 1600 registered dentists with a third of them in Auckland.
The Australian market is estimated to be worth more than $A2 billion ($NZ2.3 billion) per year.
Geddes founder, Keith Pine, will continue as chief executive.
Geddes operates through 10 fixed location practices in greater Auckland and a further three recently opened branches in Melbourne.
It said it had pioneered urban mobile dental clinics and had three purpose built mobile surgeries operating in schools and nursing homes in greater Auckland.
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