Nobilis Health acquisition of Hamilton Vein Center gets thumbs up at PI

Nobilis Health (Nobilis Health Stock Quote, Chart, News: TSXV:NHC) will begin to derive benefit from its latest acquisition immediately, says PI analyst Bob Gibson.

This morning, Nobilis Health announced it will acquire Hamilton Vein Center for $13.25-million.

“We are pleased to announce this agreement to acquire Hamilton Vein Center. Dr. Hamilton and his team have developed one of the largest vascular practices in Houston by delivering quality patient care with exceptional outcomes, making Hamilton Vein Center a great strategic and financial fit with our existing business,” said Nobilis president Kenneth Efird. “Through this transaction we will expand our vascular brand, Clarity, into two new markets in Texas, and continue the trend of expanding the proportion of our business derived from in-network cases.”

Gibson says the acquisition will hit the ground running.

“This acquisition allows the Company to grow the Clarity brand,” says the analyst. “Clarity, Nobilis’ vein and vascular brand outside of Arizona, will immediately benefit from Hamilton’s business. In addition, the Company should be able to move some of this business to Nobilis’ more profitable ASCs. Hamilton Vein Center also adds a network of referring physicians with whom Nobilis can expand their patient acquisition opportunities.”

In a research update to clients today, Gibson maintained his “Buy” rating and one-year price target of (US) $7.75 on Nobilis Health.

Gibson believes Nobilis will generate EBITDA of $52.8-million on revenue of $281.1-million in fiscal 2016. He expects these numbers will improve to EBITDA of $67.6-million on a topline of 343.6-million the following year.