Netcare targets mental health
The private hospital group pays R1.3bn for Akeso Clinics to diversify its local business
Private hospital group Netcare has agreed to buy Akeso Clinics for R1.3bn, as it seeks to capitalise on growing demand for mental healthcare services, it said on Monday. Akeso is a chain of 10 psychiatric health facilities, with two more under construction. "The incidence and prevalence of mental health disorders is increasing at a rapid rate and Netcare is underrepresented in this space. This will provide us with a really good platform to grow and expand mental healthcare services," said Netcare CEO Richard Friedland as the company released its annual results for the year to end-September. The acquisition, which was yet to be approved by the regulatory authorities, was expected to be earnings-neutral in the first year and accretive thereafter, he said. Shmuel Simpson, an analyst at 36One Asset Management, said the acquisition looked like a good opportunity as mental healthcare was a growing market. "It looks like a nice bolt-on," he said. Netcare reported a 57% drop in aftertax pro...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.