CRH Medical Corporation Announced the Completion of Two Business Development Initiatives

Friday, September 18, 2020

In the first, CRH Medical Corporation completed an accretive transaction whereby the Company has acquired 75% of a gastroenterology (“GI”) anesthesia practice, Lake Lanier Anesthesia Associates (“Lake Lanier”), located in Gainesville, GA. Lake Lanier provides anesthesia services to two ambulatory surgery centers. The Lake Lanier transaction was financed through a combination of CRH’s credit facility and cash on hand.

Lake Lanier transaction highlights:

  • Estimated annual revenue of $2.7 million
  • EBITDA and cash flow accretive

The second initiative is a start-up joint venture, whereby CRH will own a 51% interest in Oconee River Anesthesia Associates (“Oconee River”), located in Athens, Georgia. Oconee River provides anesthesia services to a single ambulatory surgery center.

Oconee River highlights:

  • Estimated annual revenue of $500,000
  • EBITDA and cash flow accretive

“We are pleased to resume our business development activities, following a temporary pause resulting from the impact of COVID-19 across the industry,” noted Tushar Ramani, CEO of CRH. “Our pipeline continues to expand, with both attractive acquisition targets and de novo candidates, given our increased scale and our track record of providing anesthesia services to GI practices across the country.”

“These two new anesthesia groups increase our presence in Georgia to 19 ambulatory surgery centers,” commented Jay Kreger, President of CRH Anesthesia. “We were able to execute these initiatives following extensive diligence with respect to the restored operations at both anesthesia practices.”

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