Australia’s Healthscope buys peer Hunter Valley for $71.3 million

Australian private hospital group Healthscope has acquired peer Hunter Valley Private Hospital in New South Wales for $71.3 million.

Healthscope said that it would pay for the Shortland, New South Wales, a site with a mix of cash and shares.

The company has issued almost 3 million shares at a price of $2.72 a share, worth $8.2 million, to fund the acquisition. The $63.1 million balance will be paid in cash.

After the deal, Healthscope will operate 46 hospitals throughout Australia. It is the company’s first hospital acquisition since returning to the Australian Securities Exchange in an initial public offering that allowed private equity owners TPG and The Carlyle Group to partially exit.